All Else Equal,what Happens to Consumer Surplus If the Price

question 60

Multiple Choice

All else equal,what happens to consumer surplus if the price of a good increases?

• A)Consumer surplus increases.
• B)Consumer surplus decreases.
• C)Consumer surplus is unchanged.
• D)Consumer surplus may increase,decrease,or remain unchanged.

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Definitions:

Wages Expense

Costs incurred by a company for the payment of wages to its employees, typically reported on the income statement.

Explanation

A statement or account that makes something clear or understandable, often used to provide reasoning or details.

Unearned Consulting Fees

Money received for consulting services that have not yet been provided, representing a liability until the service is performed.

Normal Balance

The side (debit or credit) of an account that is typically increased, reflecting a fundamental principle in accounting.