If the Price in a Competitive Market Falls and Goes

question 139

True/False

If the price in a competitive market falls and goes below the equilibrium price, then consumer surplus might increase, but producer surplus will definitely decrease.

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Definitions:

Ethane

A colorless, odorless gas that is a hydrocarbon of the alkane series, used as a fuel and in chemical synthesis.

Lewis Structure

A representation that illustrates how atoms in a molecule bond and highlights any unshared electron pairs that might be present.

Lewis Structure

A visual diagram that illustrates the bonding between atoms and the lone pairs of electrons in a molecule.

Phosphine

A colorless, flammable, and toxic gas with the chemical formula PH3, used in various industrial applications and as a pesticide.