Input Prices Are Fixed for a Period of Time and This

question 156

True/False

Input prices are fixed for a period of time and this causes firms to increase production as prices increase.

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Definitions:

Producer Surplus

is the difference between what producers are willing to accept for a good or service versus what they actually receive, due to market prices.

Consumer Surplus

The difference between the total amount that consumers are willing to pay and the actual amount they pay for a good or service.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price in a market.

Car Market

The industry related to the manufacturing, selling, and buying of automobiles.