Suppose you were assigned the task of choosing a price that maximized economic surplus. What price would you choose? Why? A. Choose a price of zero because that is where consumer surplus (the area under the demand curve and above the price) is maximized. B. Choose a price ceiling below the equilibrium so that consumers won't have to pay too much. C. Choose the price where the quantity demanded equals the quantity supplied because that is the equilibrium condition. D. Choose the price where the quantity supplied is maximized because that is where output is the greatest. E. Choose the highest price possible because that is where producer surplus (the area above the supply curve and below the price) is maximized.
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