If There Is a Decrease in Supply, Assuming a Positively

question 154

Multiple Choice

If there is a decrease in supply, assuming a positively sloped supply curve and a negatively sloped demand curve, total surplus:

• A) will increase.
• B) will decrease.
• C) will remain the same.
• D) may change, but we can't tell how.

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Definitions:

Lanugo

The fine, downy hair covering the fetus.

Vernix

The waxy substance that sometimes covers an infant at birth.

Gestation

Pregnancy.

Embryo

The early form of life in the uterus between the stages of blastocyst and fetus.