Without government intervention,the market equilibrium for oranges will
A)maximize the sum of producer and consumer surplus in the market.
B)be both efficient and equitable.
C)be equitable but not efficient.
D)be neither efficient nor equitable.

Question

Quizplus · Accepted Answer

The market equilibrium, as determined by the intersection of the supply and demand curves, will maximize the sum of producer and consumer surpluses in the market. In other words, it will efficiently allocate oranges to buyers and sellers, leading to an efficient and equitable outcome. Without government intervention or market failures, the market is the most efficient mechanism for allocating goods and services.

Without Government Intervention,the Market Equilibrium for Oranges Will