If the Market Price of a Product Increases, Then the Total

question 188

Multiple Choice

If the market price of a product increases, then the total

• A) consumer surplus will decrease.
• B) consumer surplus will increase.
• C) revenues of sellers will definitely increase.
• D) revenues of sellers will definitely decrease.

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Definitions:

Efficiency Wage Theory

Explanation for the presence of unemployment and wage discrimination which recognizes that labor productivity may be affected by the wage rate.

Productivity

The measure of the efficiency of production, often quantified as output per unit of input.

Wages

Wages are the payments made to labor for their services, typically calculated on an hourly, daily, or piecework basis, and are a primary form of income for employees.

Rules of Thumb

General principles that provide practical instructions or guidelines, typically based on experience rather than theory.