Which of the Following Statements Is Correct

question 107

Multiple Choice

Which of the following statements is correct?

• A) Consumer surplus equals the price paid for a good.
• B) The consumer surplus from a good is always larger than the total benefit from the good.
• C) An increase in price decreases consumer surplus.
• D) An increase in price has no effect on consumer surplus.
• E) The consumer surplus from a good or service must always equal producer surplus.

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Definitions:

Red Light

A signal used in traffic lights, indicating a command to stop, or metaphorically, an indication to halt an activity or process.

Primary Reinforcers

Biological necessities that act as rewarding stimuli without prior conditioning, such as food and water.

Secondary Reinforcers

Stimuli that become reinforcing through their association with primary reinforcers, which are inherently rewarding.

Tasty Food

Edible substances that are perceived as having a pleasant flavor profile by the taste receptors.