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Question

What causes a customer surplus?

A. Leaving your price at the equilibrium so no

one can afford your product.

B. Raising your prices above the equilibrium so

no one can afford your product.

C. Lowering your prices below the equilibrium so

you can't meet customer demand.

Answer

C. Lowering your prices below the equilibrium so you can't meet customer demand.

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Customer surplus is created when a seller lowers their prices below the equilibrium price. This allows customers to purchase goods and services at a lower price than they...