Catherine's demand for fish takes the conventional form of a downward-sloping demand curve. When the price of fish falls, her consumer surplus
a. increases
b. decreases
c. remains unchanged because the demand curve didn't change
d. remains unchanged because the quantity demanded remains unchanged
e. decreases only if price elasticity of demand is greater than one
A
You might also like to view...
If consumers' incomes increase and the demand for bus rides decreases
A) bus rides are a normal good. B) consumers are behaving irrationally. C) bus rides are an inferior good. D) none of the above.
Situations of negative interest rates on short-term bonds resulted from:
A) high income tax rates B) government regulations requiring financial firms to purchase government bonds C) very low risk premiums D) investors were looking for safe havens when other investments were perceived to be very risky
If disposable income falls, consumption expenditure falls ________
A) by an amount that depends on the real interest rate B) so that planned expenditure remains constant C) by an amount smaller than the decrease in disposable income D) all of the above E) none of the above
Suppose there are 1000 identical wheat farmers. For each, TC = 10 + q2. Derive the market supply curve
What will be an ideal response?