Which of the Following Will Cause a Decrease in Producer

question 16

Multiple Choice

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

• A)the imposition of a binding price ceiling in the market
• B)an increase in the number of buyers of the good
• C)income increases and buyers consider the good to be normal
• D)the price of a complement decreases

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Definitions:

Natural Gas

A fossil fuel formed from plants and animals buried underground and exposed to extreme heat and pressure over millions of years, used as energy.

Oil Drilling Rig

A complex structure equipped for drilling wells into the earth to extract oil and natural gas.

Labor Resource

Human capital or workforce available for the production of goods and services in an economy.

Computer Programmer

A professional who writes, tests, debugs, and maintains the code that allows software programs and applications to function.