_________, which is the maximum of total surplus, occurs at the market equilibrium.

_________, which is the maximum of total surplus, occurs at the market equilibrium. At the market disequilibrium, there is a ________, which is a loss of total surplus compared to the market equilibrium.

Group of answer choices：

Efficiency: Surplus

Efficiency: DWL

Equity: DWL

Equity: Shortage

Expert Solution

Answer - Option B

Efficiency , DWL

The total surplus at the equilibrium is the efficiency of the market . At this level , both , consumer and producer surplus are maximised. They may not be equal , hence equity will not be correct. The loss in surplus in market is called deaweight loss. Hence Option B will be correct.

Rahul Sunny answered 2 years ago

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