When Demand for a Product Falls, Ceteris Paribus, What Happens

question 27

Multiple Choice

When demand for a product falls, ceteris paribus, what happens to equilibrium price and consumer surplus at that price?

• A) Equilibrium price rises and consumer surplus falls.
• B) Equilibrium price falls and consumer surplus falls.
• C) Equilibrium price rises and consumer surplus rises.
• D) Equilibrium price falls and consumer surplus rises.

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Definitions:

Brain and Spinal Cord

Central components of the nervous system, with the brain responsible for processing information and the spinal cord for transmitting information to and from the brain.

Efferent Neurons

Nerve cells that carry neural impulses away from the central nervous system toward muscles or glands to trigger a response or action.

Afferent Neurons

Sensory neurons that relay information from the sense organs toward the brain.

Nerve Impulses

The electrical signals that travel along the nerves, enabling communication between the brain and the rest of the body.