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:

Nerves

Bundles of fibers that transmit electrical impulses between the brain, spinal cord, and other parts of the body, facilitating communication within the nervous system.

Synaptic Vesicles

Small structures within neurons that store neurotransmitters, which are released into the synaptic cleft during neural communication.

Axon Terminals

The endings of axons that transmit signals to other neurons or muscle cells through synapses.

Neurogenesis

The process of generating new neurons in the brain, which occurs in certain brain regions throughout life.