Assume the Market in the Graph Is in Equilibrium at Demand

question 78

Multiple Choice

Assume the market in the graph is in equilibrium at demand (D) and supply (S₁) . If supply shifts to S₂, and a new equilibrium is reached, which of the following statements is true?

• A) Consumer surplus increases by $45.
• B) Producer surplus decreases by $45.
• C) Consumer surplus increases by $90.
• D) Total surplus increases by $45.

---

Definitions:

Influence

The capacity or power of individuals or groups to effect change or impact the beliefs, behaviors, or actions of others.

Communication

The exchange of information or news between people, through speaking, writing, or using some other medium.

Goal

A desired result or outcome that a person or system envisions, plans, and commits to achieve.

Self-Directed Work Teams

Groups of employees who are given the autonomy to plan and execute their own tasks, often responsible for a complete business operation or process.