1. Deadweight loss is
A. made up of a loss of only producer surplus.
B. not a social loss.
C. made up of a loss of both consumer surplus and producer surplus.
D. made up of a loss of only consumer surplus.
2. Suppose the value of the price elasticity of supply is 4. What does this? mean?
A. For every? $1 increase in? price, quantity supplied increases by 4 units.
B. A 1 percent increase in the price of the good causes the supply curve to shift upward by 4 percent.
C. A 4 percent increase in the price of the good causes quantity supplied to increase by 1 percent.
D. A 1 percent increase in the price of the good causes quantity supplied to increase by 4 percent.