If Suppliers of Garbage Collection Services Charged the Full Costs

question 70

Multiple Choice

If suppliers of garbage collection services charged the full costs of providing the service, the supply curve would

• A)change to a positive slope.
• B)change to a negative slope.
• C)shift to the left.
• D)shift to the right.

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Definitions:

Total Producer Surplus

The total benefit that producers receive from selling a good or service, measured as the difference between the market price and the minimum price producers are willing to accept.

Caitlin's Producer Surplus

The difference between what a producer (in this case, Caitlin) actually receives for selling a good and the minimum they would be willing to accept.

Producer Surplus

The difference between what producers are willing to accept for a good or service and what they actually receive, measured by the area above the supply curve and below the market price.

Whitewater Rafting

A recreational outdoor activity which uses an inflatable raft to navigate through rough or whitewater rivers.