Figure 7-3 -Refer to Figure 7-3.Area C Represents the

question 95

Multiple Choice

Figure 7-3
-Refer to Figure 7-3.Area C represents the

• A)decrease in consumer surplus that results from a downward-sloping demand curve.
• B)consumer surplus to new consumers who enter the market when the price falls from P2 to P1.
• C)increase in producer surplus when quantity sold increases from Q2 to Q1.
• D)decrease in consumer surplus to each consumer in the market when the price increases from P1 to P2.

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Definitions:

Fair Labor Standards Act

A U.S. law that sets minimum wage, overtime pay eligibility, recordkeeping, and child labor standards.

Regular Hourly Wage

Regular Hourly Wage is the fixed amount of money that an employee is paid for each hour worked, excluding overtime or bonuses.

Gross Wages

The total amount of money earned by an employee before any deductions or taxes are applied.

Salaries And Wages Expense

The total amount recorded by a business for the compensation of employees, including both salaries and hourly wages.