Which Situation Would Most Likely Cause a Decrease in Consumer

question 122

Essay

Which situation would most likely cause a decrease in consumer surplus in the toy market?
A.The cost of shipping increases because of higher oil prices.
B.Consumer income increases.
C.There is an unexpected baby boom.
D.A new assembly line design increases worker productivity.

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Definitions:

Profits

Financial gains obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the operation.

Farmer

An individual engaged in the practice of raising crops or livestock, typically for food or raw materials.

Profit-Maximizing

The process by which a firm determines the price and output level that returns the greatest profit.

Per-Bushel Profit

The financial gain earned by selling a bushel (a unit of measure for volume) of agricultural produce, after subtracting the cost of production.