________ in Consumer Surplus Occurs When the Price of a Good

question 14

Multiple Choice

________ in consumer surplus occurs when the price of a good ________.

• A) An increase; decreases and consumers can buy more of the good at the lower price
• B) A decrease; decreases and consumers buy less of the good at the cheaper price
• C) An increase; decreases and consumer efficiency declines
• D) A decrease; increases and the paradox of value is no longer valid
• E) An increase; increases but the relative price does not change

---

Definitions:

Contingency Thinking

Contingency thinking is an approach that considers the possible variations in a situation and plans for multiple potential scenarios, acknowledging that there is no one-size-fits-all strategy.

Uncertain Environment

Lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives.

Stable Environment

An environment characterized by predictability, consistency, and minimal change, allowing organizations to plan with greater certainty.

Corporate Social Responsibility

Business practices involving initiatives that benefit society and go beyond the interests of the company.