Market equilibrium maximizes the total surplus in a market

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Reference no: EM131247467

1. Market equilibrium maximizes the total surplus in a market and therefore it is efficient.

A) True

B) False

2. Market equilibrium guarantees that all mutually beneficial transactions take place.

A) True

B) False

3. A maximum price below the market equilibrium price will lower the total surplus of the market.

(A) True

(B) False

Reference no: EM131247467

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