Other Things Equal,if the Price of a Good Falls,the Consumer

question 62

Multiple Choice

Other things equal,if the price of a good falls,the consumer surplus

• A)decreases.
• B)is unchanged.
• C)increases.
• D)may increase, decrease, or remain unchanged.

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Definitions:

Direct Materials

The raw materials that can be directly traced to the manufacturing of a product and are considered a variable cost.

Profitable Product Lines

Specific categories of products that generate more revenue than the costs associated with their production and marketing.

Unassembled Product

Product components that have not yet been put together or manufactured into a final product.