Changes in a Firm's Profit Induce ________ in the Producer

question 148

Multiple Choice

Changes in a firm's profit induce ________ in the producer surplus (PS) .

• A) identical changes
• B) smaller changes
• C) larger changes
• D) no changes

---

Definitions:

Outlet Stores

Retail establishments that sell products directly from manufacturers at reduced prices.

Gap Factory Store

Gap Factory Store is an outlet store division of Gap Inc. that sells Gap-branded clothing and accessories at reduced prices compared to regular retail stores.

Nordstrom Rack

A retail division of Nordstrom Inc. that offers discounted clothing, accessories, and home goods from past seasons as well as specialty merchandise.

Excess Merchandise

Refers to the surplus or additional stock of products that a company has over the demand from customers.