If Total Surplus Falls, Which of the Following Must Have

question 81

Essay

If total surplus falls, which of the following must have occurred?
A.There was an increase in demand or a decrease in supply.
B.There was an increase in demand and an increase in supply.
C.There was a decrease in demand or a decrease in supply.
D.There was a decrease in demand and an increase in supply.

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Definitions:

Surplus

An excess of income or assets over expenditure or liabilities in a given period, typically a financial year.

Supervisory Cost

Supervisory cost involves expenses related to overseeing and directing operations or employees within a company, often including salaries of supervisors and related overhead.

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services and are a significant component of manufacturing costs.

Factory Machines

Durable, industrial equipment used in the manufacturing process, critical to producing goods and services.