Assume the Market Depicted in the Graph Is in Equilibrium

question 130

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, but producer surplus decreases.
• B)Consumer surplus decreases, but producer surplus increases.
• C)Both consumer and producer surplus increase.
• D)Both consumer and producer surplus decrease.

---

Definitions:

Monthly

Pertaining to or occurring every month.

Auscultation

The medical practice of listening to the internal sounds of the body, typically using a stethoscope, to assess the condition of heart, lungs, or other organs.

Heel-to-shin

A neurological test involving running the heel of one foot down the shin of the opposite leg, testing coordination and motor function.

Supine Position

Laying horizontally with the face and torso facing up, commonly used in medical contexts.