A Change in the Price of a Good

question 113

Multiple Choice

A change in the price of a good

• A)Causes a shift in the supply curve.
• B)Results in a change in quantity supplied.
• C)Results in a change in supply.
• D)Is a determinant of supply.

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Definitions:

Consumer Surplus

The variance between what consumers are prepared and can afford to pay for a product or service and the actual amount they end up paying.

Marginal Cost

The additional cost incurred from producing one more unit of a product or service.

Two-part Tariff

A pricing strategy that involves a fixed fee in addition to a variable charge for each unit of the product consumed.

Marginal Revenue Curves

A graphical representation showing how marginal revenue varies as the quantity of output changes, commonly used by firms to make decisions about production and pricing.