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.