If the Demand for a Good Does Not Change, How

question 359

Essay

If the demand for a good does not change, how will an increase in the price of that good affect the consumer surplus from it?

---

Definitions:

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders, which are reinvested into the business.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Stock Dividend

A payment made to shareholders in the form of additional shares in the company, rather than cash.

Cash Dividend

A direct payment of profits made by a company to its shareholders, usually in cash.