As the Price of a Good Increases,the Loss in Consumer

question 152

Multiple Choice

As the price of a good increases,the loss in consumer surplus is larger,

• A) the more elastic demand is.
• B) the more money previously spent on the good.
• C) the less money previously spent on the good.
• D) the smaller the price increase.

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Definitions:

Rescission

A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made; may be effected through the mutual consent of the parties, by their conduct, or by court decree.

Contractual Obligation

A legal duty created by the terms of a contract, requiring parties engaged in the contract to perform or refrain from certain actions.

Courts of Law

Judicial institutions where legal disputes are adjudicated, applying laws to reach verdicts and judgements.

Equitable

Pertaining to fairness or justice in the way treatments, decisions, or actions are carried out, especially within the context of law.