Suppose That the Equilibrium Price in the Market for Widgets

question 155

Multiple Choice

Suppose that the equilibrium price in the market for widgets is $8.If a law increased the minimum legal price for widgets to $9,what would happen to producer surplus

• A)It would necessarily increase even if the higher price resulted in a surplus of widgets.
• B)It would necessarily decrease because the higher price would create a surplus of widgets.
• C)It might increase or decrease.
• D)It would be unaffected.

---

Definitions:

Job Security

The likelihood or assurance an individual has that they will keep their job without the risk of becoming unemployed.

Preventive Solutions

Strategies or measures taken in advance to avoid potential problems or to mitigate their impact.

Workplace Stress

The emotional, physical, and psychological strain or tension that arises from aspects of the work environment or job demands.

Causes of Stress

Factors or conditions that trigger physical or emotional strain and tension, which can be external (environmental, psychological) or internal (biological, personal).