If the Price of a Product Increases

question 103

Multiple Choice

If the price of a product increases:

• A)the consumer surplus will increase.
• B)the producer surplus will increase.
• C)the price increase has no effect on the producer surplus.
• D)the consumer surplus will not change.

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Definitions:

Closing Accounts

The process of finalizing all ledger accounts to prepare financial statements at the end of an accounting period.