If the Equilibrium Price Rises

question 85

Multiple Choice

If the equilibrium price rises,

• A)The consumer surplus will be reduced.
• B)The producer surplus will fall.
• C)The consumer surplus will increase.

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Definitions:

Investment Strategy

A set plan of action designed to achieve long-term financial goals, involving the selection of various financial assets for investment.

Risk Aversion

The tendency of investors to prefer safer investments over riskier ones to avoid loss.

Investors Prefer

Refers to investors' tendencies to favour certain assets, securities, or investment strategies based on risk, return, and personal preferences.

Expected Return

The predicted amount of profit or loss an investment generates based on historical performance or analyst forecasts.