A graph with the vertical axis labeled Price in dollars and the horizontal axis labeled Quantity. An upward sloping curve is labeled S, and a downward sloping curve is labeled D. The curves intersect at a price of 600 dollars and quantity of 20,000. To the left of this intersection, the quantity of 15,000 intersects curve D at 400 dollars and curve S at a price level above 600 dollars. There are five labeled areas to the left of this intersection T, U, V, W, and X. Area T is above 600 dollars, to the left of the quantity 15,000, and below the D curve. Area U is above 600 dollars, between quantities 15,000 and 20,000, and below the D curve. Area V is between prices 400 dollars and 600 dollars, and to the left of the quantity 15,000. Area W is bounded below 600 dollars, between the quantities 15,000 and 20,000, and above the S curve. Area X is below 400 dollars, to the left of the quantity 15,000, and above the S curve. Assume that the market shown is perfectly competitive with no externalities. If the production output is 15,000 units, then the market is allocatively efficient there is a shortage of the good deadweight loss is being minimized deadweight loss is being maximized consumer and producer surplus are maximized Question 3(Multiple Choice Worth 3 points) (06.05 MC) Which of the following is a reason for increased income inequality? There is a decrease in the productive capacity of capital so that wages and salaries are instead paid to an improving labor force