All else equal, what happens to consumer surplus if the price of a good increases?
a. Consumer surplus increases.
b. Consumer surplus decreases.
c. Consumer surplus is unchanged.
d. Consumer surplus may increase, decrease, or remain unchanged.
b
You might also like to view...
Country A has a lower stock of capital than Country B, but the supply of labor in both the countries is equal
A) An additional unit of capital will increase output in Country A only if there is an increase in the total efficiency units of labor. B) The increase in output due an additional unit of capital will be larger in Country A than in Country B. C) The increase in output due an additional unit of capital will be smaller in Country A than in Country B. D) An additional unit of capital will increase output in Country B only if there is an increase in the total efficiency units of labor.
Scientists have said for years cod was so seriously overfished in European Union waters that there was a risk of extinction due to stock collapse. Why would cod be on the risk of extinction?
A) Fishing in the sea for cod is an example of a public good. B) Fishing in the sea for cod is an example of a common resource. C) Fishing in the sea for cod is an example of a private good. D) Fishing in the sea for cod is an example of a natural monopoly.
When a firm is at its short-run break-even point
A) economic profits are positive. B) economic profits equal zero and the firm should shut down. C) economic profits equal zero and the firm is earning a nominal rate of return on investment. D) economic profits are negative but the firm should continue to produce because accounting profits are positive.
As new firms enter a monopolistic competitive industry, it can be expected that:
a. market price will increase. b. the output of existing firms will increase. c. profits of existing firms will increase. d. market demand should decrease. e. profits of existing firms will decrease.