If a Market Is Allowed to Move Freely to Its

question 65

Multiple Choice

If a market is allowed to move freely to its equilibrium price and quantity,then an increase in supply will

• A)increase consumer surplus.
• B)reduce consumer surplus.
• C)not affect consumer surplus.
• D)Any of the above are possible.

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Definitions:

Efficiency

Refers to the ability to achieve a desired result without wasting materials, time, or energy.

Equality

The circumstance in which all individuals possess identical opportunities, rights, and standing.

Opportunity Cost

The cost of the next best alternative foregone as a result of making a decision.

Tuition

The fee charged by educational institutions for instruction and other services.