Which of the Following Will Cause No Change in Producer

question 87

Multiple Choice

Which of the following will cause no change in producer surplus?

• A)the imposition of a nonbinding price ceiling in the market
• B)buyers expect the price of a good to be higher next month
• C)the price of a substitute increases
• D)income increases and buyers consider the good to be inferior

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Definitions:

Excess Demand

A situation in which the quantity demanded of a good or service exceeds the quantity supplied at a given price.

Queuing

The process of forming or waiting in a line, often applied to the theory studying the behavior of lines to improve service efficiency.

Rationing Mechanism

A system or method used to distribute scarce goods or services among competing users.

Price Floor

A government- or authority-imposed minimum price that can be charged for goods and services, typically above the equilibrium price, to prevent prices from falling too low.