If Demand for a Product Rises, What Happens to Consumer

question 33

Multiple Choice

If demand for a product rises, what happens to consumer surplus, assuming supply holds steady and the market sells at equilibrium prices?

• A) Consumer surplus will be larger after the increase in demand.
• B) Consumer surplus will be smaller after the increase in demand.
• C) Consumer surplus will remain unchanged after the increase in demand.
• D) There is no way to predict whether consumer surplus will change.

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Definitions:

Belonging

The feeling of security and support when there is a sense of acceptance, inclusion, and identity for a member within a group.

Above-Average Effect

The tendency for individuals to overestimate their abilities or qualities, particularly in comparison to others, also known as the superiority bias.

Self-Verification

The desire and tendency of individuals to seek confirmation of their self-concept from the social environment.

Terror Management Theory

A psychological concept suggesting that humans have anxiety over their mortality, influencing their beliefs and behaviors to manage this fear.