For a Given Market Demand Curve, If the Market Clearing

question 7

Multiple Choice

For a given market demand curve, if the market clearing price decreases, then the amount of consumer surplus will

• A)decrease.
• B)increase.
• C)become negative.
• D)none of the above due to insufficient information.

---

Definitions:

Demand Factors

Factors that determine consumers’ willingness and ability to pay for products and services.

Global Economy

The interconnected world economy where goods, services, and labor are exchanged across international borders.

Spreadsheet Simulation

A technique involving the use of spreadsheet software to model and analyze complex systems or processes.

Target Return

A pricing strategy where the price is set based on a desired return on investment or profit margin.