When There Is a Technological Advance in the Ice Cream

question 224

Multiple Choice

When there is a technological advance in the ice cream industry,consumer surplus in that market will

• A) increase.
• B) decrease.
• C) not change,since technology affects producers and not consumers.
• D) not change,since consumers' willingness to pay is unaffected by the technological advance.

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Definitions:

Market Price

The present cost at which a product or service is available for purchase or sale in the marketplace.

Net Marginal Revenue

The difference between the marginal revenue earned from selling an additional unit of a product or service and the marginal cost of producing that unit.

Wool Fabric

A textile material made from the natural fibers of sheep, known for its warmth, resilience, and ability to absorb moisture without feeling wet.

Marginal Cost

The upswing in total financial outlay required for the production of one more unit of a good or service.