(Figure: Determining Surplus and Loss) Consider the Graph

question 159

Multiple Choice

(Figure: Determining Surplus and Loss) Consider the graph. If the price is raised from $8 to $12, producer surplus

• A) increases by $50 and deadweight loss increases by $30.
• B) increases by $50 and deadweight loss increases by $70.
• C) decreases by $50 and deadweight loss increases by $30.
• D) decreases by $190 and deadweight loss increases by $70.

---

Definitions:

Retailer's Lead Time

The duration between a retailer placing an order and receiving the goods, impacting inventory management and customer satisfaction.

Quick Response Systems

Technologies or methodologies focusing on reducing lead times and enhancing efficiency in operations, often in a supply chain or manufacturing context.

Efficient Consumer Response Systems

A strategy used in the retail industry to improve the supply chain's responsiveness to consumer needs through better data sharing and management.

Order Replenishment Systems

Systems designed to manage and automate the process of restocking products or materials to meet customer demand without overstocking.