According to the Law of Demand,the Demand Curve for a Good

question 63

Multiple Choice

According to the Law of Demand,the demand curve for a good will

• A) shift leftward when the price of the good increases.
• B) shift rightward when the price of the good increases.
• C) slope downward.
• D) slope upward.

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Definitions:

Total Surplus

The total net benefit to society from the production and consumption of a good, equal to the sum of consumer surplus and producer surplus.

Consumer Surplus

The deviation between the full cost that consumers are willing and are financially suitable to pay for a product or service, and the cost they ultimately pay.

Individual Consumer Surplus

The net gain to an individual buyer from the purchase of a good; equal to the difference between the buyer’s willingness to pay and the price paid.

Selling Haircuts

The commercial activity of providing hair cutting and styling services to customers for a fee.