If a Perfectly Competitive Market Is in Equilibrium and Market

question 5

Multiple Choice

If a perfectly competitive market is in equilibrium and market demand decreases,which of the following would happen?

• A)both producer and consumer surplus would increase
• B)both producer and consumer surplus would decrease
• C)producer surplus would decrease and consumer surplus would increase
• D)producer surplus would increase and consumer surplus would decrease
• E)producer and consumer surplus would remain unchanged

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Definitions:

Stability

The quality or state of being resistant to change, maintaining the same condition, or returning to a baseline state after being disturbed.

Infancy

Refers to the earliest stage in human life, spanning from birth to the age of two, characterized by rapid physical and cognitive development.

Adulthood

A life stage characterized by reaching physical, cognitive, and social maturity, and assuming adult roles and responsibilities.

Attachment Style

Patterns of expectations, needs, and emotions one displays towards significant others, shaped by early relationships with caregivers.