Suppose There Is an Increase in Supply That Reduces Market

question 68

True/False

Suppose there is an increase in supply that reduces market price. Consumer surplus increases because (1) consumer surplus received by existing buyers increases and (2) new buyers enter the market.

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Definitions:

Compulsion

An intense, often overwhelming urge to carry out an action, particularly one that is illogical or against one's own desires.

Hallucination

A perception of having seen, heard, touched, tasted, or smelled something that isn't actually present, often occurring without an external stimulus.

Delusion

A false belief held with strong conviction despite superior evidence to the contrary, often found in psychiatric conditions such as schizophrenia.

Obsession

Persistent and intrusive thoughts, images, or urges that cause distress or anxiety.