When the Price Rises and the Supply Curve Does Not

question 176

Multiple Choice

When the price rises and the supply curve does not shift,the firms' producer surplus ________.When the price falls and the supply curve does not shift,the firms' producer surplus ________.

• A) increases; decreases
• B) decreases; increases
• C) decreases; decreases
• D) increases; increases
• E) does not change; does not change

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Definitions:

Principal

The primary party to a transaction, such as a contract or financial instrument, who has the rights and responsibilities directly related to it.

Agent

An individual authorized to act on behalf of another person or entity, often in a business setting.

Liability

A legal obligation or debt that an entity is bound to fulfill towards another party.

Employer's Liability

Legal responsibility of an employer for injuries, illnesses, or damages suffered by employees as a result of their employment.