Assume the price of tomatoes increases. Which of the following causes would correspond to greater producer surplus?
A) an increase in supply
B) an increase in costs
C) a decrease in supply
D) an increase in demand
D
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Consumer’s surplus is what one consumer is willing to pay for a commodity over what another consumer is willing to pay for the same commodity.
Answer the following statement true (T) or false (F)
As more people in a developing country started using debit cards, banks installed more ATM machines, thereby benefitting all customers. This is an example of a(n) ________
A) network externality B) pecuniary externality C) adverse selection D) moral hazard
Assuming mustard and burgers are complements, a decline in the price of burgers will
A) decrease the demand for burgers. B) decrease in the quantity demanded of burgers. C) increase the demand for mustard. D) decrease the demand for mustard.
If the price of pizza increases, the quantity of pizza demanded will fall because some consumers will switch to tacos, hamburgers, or submarine sanwiches. This is called the:
a. income effect b. the alternative effect c. the substitution effect d. the normal good effect