When Demand for a Product Falls, Ceteris Paribus, What Happens

question 27

Multiple Choice

When demand for a product falls, ceteris paribus, what happens to equilibrium price and consumer surplus at that price?

• A) Equilibrium price rises and consumer surplus falls.
• B) Equilibrium price falls and consumer surplus falls.
• C) Equilibrium price rises and consumer surplus rises.
• D) Equilibrium price falls and consumer surplus rises.

---

Definitions:

Procedures

Established methods for conducting tasks or activities within an organization, aimed at achieving consistency and efficiency.

Performing a Task

The act of undertaking and completing a specific job, duty, or assignment.

Process Controls

Mechanisms and procedures implemented to regulate and optimize the performance of processes within an organization.

Formalization

Is written documentation of work rules, policies, and procedures.