A monopolist's profit is equal to (Price – Marginal Cost) × Quantity

If the Chinese government sets a price ceiling below the equilibrium price, the result will be to

A) increase total surplus. B) create deadweight loss. C) increase surplus and create deadweight loss. D) eliminate deadweight loss.

An increase in the cost of lumbering activities will:

a. increase the quantity of wood supplied to the furniture market. b. decrease the quantity of wood supplied to the furniture market. c. decrease the supply of wood to the furniture market. d. increase the supply of wood to the furniture market.