When the Price of Frisbees Used in the Sport of Ultimate

question 17

Multiple Choice

When the price of Frisbees used in the sport of ultimate rises above the equilibrium price, which situation occurs?

• A) a transfer of consumer surplus to producer surplus
• B) a transfer of producer surplus to consumer surplus
• C) an increase in both consumer surplus and producer surplus
• D) no change in consumer surplus or producer surplus

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Definitions:

Off-price Retailers

Retailers that sell branded goods at significant discounts off the suggested retail price, typically by purchasing overstocked or out-of-season items.

Wholesale Prices

The cost of goods sold in large quantities primarily to retailers, distributors, or other merchants, rather than to end consumers.

Advertising Allowances

Financial incentives provided by manufacturers to retailers or wholesalers to support advertising or promotion of specific products.

Category Specialists

Retailers or businesses that focus on selling products within a specific category, offering a wide assortment within that category to cater to various customer needs.