Assume the Market Depicted in the Graph Is in Equilibrium

question 42

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 and total surplus increases.
• B)Consumer surplus decreases and total surplus increases.
• C)Consumer surplus increases and total surplus decreases.
• D)Consumer surplus decreases and total surplus decreases.

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Definitions:

Low Self-esteem

A psychological condition where an individual holds a low regard or value for themselves.

External Influences

Factors outside an individual or organization that can affect its behavior and performance, such as economic conditions, societal trends, or technological developments.

Extraversion

A personality trait characterized by outgoing, sociable, and energetic behaviors.

Absenteeism

The habitual non-presence of an employee at their job.