Graphically, the Area That Represents the Difference Between the Market

question 352

Multiple Choice

Graphically, the area that represents the difference between the market price and the minimum price required to induce suppliers to produce a good is called

• A) consumer surplus.
• B) producer surplus.
• C) marginal cost.
• D) triangular arbitrage.

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Definitions:

Strike-Slip Fault

A type of fault where the movement of the Earth's crust is primarily horizontal, parallel to the fault line.

Thrust Fault

A type of fault where rock strata are pushed upwards on one side due to compressional forces.

Normal Fault

A type of fault where the hanging wall slides downward relative to the footwall due to tensile stress in the Earth's crust.

Strike-Slip Fault

A type of fault in which two blocks of the Earth's crust slide past each other horizontally along the fault plane.