(Figure: Price and Quantity III) an Increase in Demand Caused

question 43

Multiple Choice

(Figure: Price and Quantity III) An increase in demand caused consumer surplus to change from _____ to _____.

• A) $16,000; $36,000
• B) $8,000; $18,000
• C) $8,000; $12,000
• D) $4,000; $9,000

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Definitions:

Scarcity

The primary economic challenge is the existence of boundless human demands and necessities within a finite supply of resources.

Technology Advances

Progressive developments and improvements in technology that enhance productivity, efficiency, and the quality of goods and services.

Production Possibilities Curve

A graph that shows the maximum quantity of one good that can be produced for each possible quantity of another good produced, illustrating the trade-offs and opportunity costs of production choices.

Inefficiently

A descriptor for processes or activities that do not use resources in the best possible way, resulting in wasted effort or energy and not achieving maximum productivity.