Assume the Market Depicted in the Graph Is in Equilibrium

question 49

Multiple Choice

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

• A) Consumer surplus increases and total surplus increases.
• B) Consumer surplus decreases and total surplus increases.
• C) Consumer surplus increases and total surplus decreases.
• D) Consumer surplus decreases and total surplus decreases.

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Definitions:

Agriculture

The science, art, and business of cultivating soil, producing crops, and raising livestock; a fundamental component of the global economy.

Social Control

Mechanisms, strategies, and institutions used by a society to regulate individual behavior and maintain social order.

Protest Frequency

The rate or occurrence of public demonstrations expressing opposition to or support for a cause or policy.

Political Opportunism

The practice of politicians or political parties making decisions or taking positions for short-term gain rather than following consistent principles or ideology.