When an Increase in One Variable Is Associated with a Decrease

question 5

Multiple Choice

When an increase in one variable is associated with a decrease in a second variable, the two variables are

• A)positively related.
• B)inversely proportionally related.
• C)equivalent.
• D)proportionally related.
• E)negatively related.

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Definitions:

Consumer Surplus

The discrepancy between what consumers are willing to spend on a good or service and their actual expenditures.

Surplus II

An excess of supply over demand in the market, leading to excess goods and potential lower prices.

Consumer Surplus

The separation between the entire amount consumers are keen and financially able to expend on a good or service, and the amount they actually expend.

Surplus I

An excess of supply over demand, leading to a situation where the quantity of a good or service exceeds the quantity demanded at the current price.