If the Price of Oak Lumber Increases,what Happens to Consumer

question 58

Multiple Choice

If the price of oak lumber increases,what happens to consumer surplus in the market for oak cabinets?

• A)Consumer surplus increases.
• B)Consumer surplus decreases.
• C)Consumer surplus will not change consumer surplus;only producer surplus changes.
• D)Consumer surplus depends on what event led to the increase in the price of oak lumber.

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Definitions:

Multinational Corporation

A corporation doing business in more than one country; often it owns production facilities in at least one country and sells in many countries.

Standard Oil Trust

A conglomerate of interconnected oil companies controlled by John D. Rockefeller in the late 19th and early 20th centuries, known for its monopolistic practices.

Exxon

An American multinational oil and gas corporation, one of the world's largest publicly traded energy providers and chemical manufacturers.

Mobil

An American oil company now merged with Exxon to form ExxonMobil, one of the world's largest publicly traded international oil and gas companies.