If the current allocation of resources in the market for wallpaper is efficient,then it must be the case that
A)producer surplus equals consumer surplus in the market for wallpaper.
B)the market for wallpaper is in equilibrium.
C)on the last unit of wallpaper that was produced and sold,the value to buyers exceeded the cost to sellers.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

If the market for wallpaper is in equilibrium, it means that the quantity demanded equals the quantity supplied at the current price, indicating that the allocation of resources is efficient. The other options may be true in certain circumstances but do not necessarily imply market efficiency.

If the Current Allocation of Resources in the Market for Wallpaper