Which of the Following Is Not True Concerning Consumer Surplus

question 307

Multiple Choice

Which of the following is not true concerning consumer surplus?

• A) It is qraphically the area under the demand curve and above the market price.
• B) It does not exist in equilibrium.
• C) A leftward shift of the supply curve will decrease consumer surplus.
• D) A rightward shift of the supply curve will increase consumer surplus.

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Definitions:

Direct Product Cost

The sum of all costs directly associated with the production of a product, including materials and labor.

Production Line Workers

Employees who work on the manufacturing line, directly involved in producing goods.

Milk Chocolate Bars

A confection composed of sugar, cocoa butter, milk product, and chocolate liquor, typically formed into bars.

Direct Product Cost

Expenses that are directly attributable to the production of specific goods or services, such as raw materials and direct labor.