Which of the Following Will Cause an Increase in Consumer

question 24

Multiple Choice

Which of the following will cause an increase in consumer surplus?

• A)an increase in the production cost of the good
• B)a technological improvement in the production of the good
• C)a decrease in the number of sellers of the good
• D)the imposition of a binding price floor in the market

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Definitions:

First Slice

The initial allocation or offering of a resource, opportunity, or product, indicating priority or privilege in its reception.

Second Slice

Implies a subsequent option or opportunity, often discussing additional choices available after an initial selection has been made.

MR>MC

A condition where marginal revenue (MR) exceeds marginal costs (MC), indicating a potential profit increase if production is expanded.

Increase Production

A process of ramping up the quantity of goods produced, often in response to higher demand or to achieve economies of scale.