If There Is a Decrease in Demand (Parallel Shift of Demand

question 163

Multiple Choice

If there is a decrease in demand (parallel shift of demand to the right) ,assuming a positively sloped supply curve and a negatively sloped demand curve,total surplus:

• A)will increase.
• B)will decrease.
• C)will remain the same.
• D)may change,but we can't tell how.

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Definitions:

Unliquidated Debt

A debt for which the exact monetary value has not been determined.

Preexisting Duty

An obligation that a party is already legally bound to fulfill, which cannot serve as consideration for a new contract.

Accord and Satisfaction

A legal settlement where an agreement is made to discharge a claim by providing some form of compensation that differs from the original obligation.

Liquidated Debt

A debt for which the exact monetary value has been determined and acknowledged by both the debtor and the creditor.