When the supplier of an artificially scarce good charges a price greater than zero, then the:
a. good becomes nonexcludable.
b. supplier reduces producer surplus from what it would be if the price were zero.
c. supplier reduces consumer surplus from what it would be if the price were zero.
d. supplier gives rise to the free-rider problem.
Ans: c. supplier reduces consumer surplus from what it would be if the price were zero.
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