What Happens to the Amount of Consumer Surplus and Producer

question 169

Multiple Choice

What happens to the amount of consumer surplus and producer surplus when the supply of scarves suddenly declines (shifts left) ?

• A) Producer surplus declines and consumer surplus is unchanged.
• B) Consumer surplus declines and producer surplus is unchanged.
• C) Consumer surplus declines and producer surplus declines.
• D) Consumer surplus is unchanged and producer surplus is unchanged.
• E) Producer surplus increases and consumer surplus increases.

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Definitions:

Thalamus

A brain structure that acts as a relay station for sensory and motor signals to the cerebral cortex.

Cortex

The outer layer of the cerebrum in the brain, involved in many complex brain functions such as memory, attention, perceptual awareness, and language.

Appropriate Response

A reaction or behavior that is considered suitable or proper in a given context or situation.

Amygdala

A part of the brain's limbic system implicated in emotion regulation, emotional memory, and responses to fear and stress.