According to the Graph Shown, If the Market Goes from Equilibrium

question 140

Multiple Choice

According to the graph shown, if the market goes from equilibrium to having its price set at $10:

• A) total surplus will fall by $30.
• B) producer surplus will rise by $45.
• C) total surplus will change by $15.
• D) consumer surplus will fall by $30.

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Definitions:

Credit

Refers to the provision of goods or services with the expectation of future payment, or an accounting entry that increases liabilities or decreases assets.

Asset Accounts

Accounts on a balance sheet representing owned resources expected to provide future economic benefits.

Expense Accounts

Accounts used to record all expenditures incurred by a business during an accounting period, excluding costs of goods sold.

Debits

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet or in an expense on the income statement.