Along a Given Demand Curve, an Increase in the Price

question 41

Multiple Choice

Along a given demand curve, an increase in the price of a good will cause consumer surplus to:

• A)increase.
• B)decrease.
• C)not change.
• D)cannot be determined without information about the supply curve.

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Definitions:

Mainstream Economics

The body of economic thought and analysis that is widely accepted and taught across major universities, focusing largely on microeconomics and macroeconomics theories.

Great Depression

A severe worldwide economic depression that took place mostly during the 1930s, starting in the United States.

John Maynard Keynes

A British economist whose ideas fundamentally changed the theory and practice of macroeconomics and economic policies of governments.

Classical Economists

Early economists, such as Adam Smith and David Ricardo, who focused on the role of free markets in promoting economic growth and efficiency.