Which of the following statements is not correct about a market in equilibrium?
A)The price determines which buyers and which sellers participate in the market.
B)Those buyers who value the good more than the price choose to buy the good.
C)Those sellers whose costs are less than the price choose to produce and sell the good.
D)Consumer surplus will be equal to producer surplus.

Question

Quizplus · Accepted Answer

Consumer surplus and producer surplus may not be equal in a market in equilibrium, especially if the demand and supply curves are not symmetrical. It is possible for one group (buyers or sellers) to have a larger surplus than the other.

Which of the Following Statements Is Not Correct About a Market