Which of the Following Events Would Increase Producer Surplus

question 49

Multiple Choice

Which of the following events would increase producer surplus?

• A) Sellers' costs stay the same and the price of the good increases.
• B) Sellers' costs increase and the price of the good stays the same.
• C) Sellers' costs increase and the price of the good decreases.
• D) All of the above are correct.

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Definitions:

GDP Deflator

An economic measure that accounts for inflation by converting output measured at current prices into constant-dollar GDP.

Net Domestic Product

A measure of a nation's total economic output, adjusted for depreciation; it is the gross domestic product (GDP) minus the depreciation on a country’s capital goods.

National Income

The total amount of money earned within a country from the production of goods and services over a specified period, usually a year.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, stripping out the effects of inflation.