All Else Being Equal, a Demand Increase

question 133

Multiple Choice

All else being equal, a demand increase:

• A) causes consumer surplus to increase and producer surplus to decrease.
• B) causes consumer surplus to decrease and producer surplus to increase.
• C) causes both consumer and producer surplus to increase.
• D) causes both consumer and producer surplus to decrease.

---

Definitions:

Reconstruction Plan

The period after the Civil War in the United States when the Southern states were reorganized and reintegrated into the Union; it involved significant political, social, and economic changes.

Practice

The actual application or use of an idea, belief, or method, as opposed to theories relating to it.

Reconstruction Governments

were formed in the southern United States after the Civil War, tasked with rebuilding and integrating the states back into the Union, often with significant Northern and federal government influence.

Economic Policies

Economic policies are strategies and decisions made by governments or institutions to influence or control the economic behavior of a country or region.