Which of the Following Will Cause a Decrease in Producer

question 400

Multiple Choice

Which of the following will cause a decrease in producer surplus?

• A)the imposition of a nonbinding price ceiling in the market
• B)buyers expect the price of a good to be higher next month
• C)the price of a substitute increases
• D)income increases and buyers consider the good to be inferior

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, which suggests that people are motivated to fulfill basic needs before moving on to other, more advanced needs.

Motivation

The driving force behind individuals' actions, desires, and needs, influencing how they behave and what they strive to achieve.

Consumer Behavior

the study of how individuals or groups select, purchase, use, and dispose of goods and services, as well as the factors that influence these decisions and behaviors.

Low-involvement Purchase

A buying decision made by consumers on products that are perceived as low risk and require minimal thought or effort.