Assume the Market Is in Equilibrium in the Graph Shown

question 49

Multiple Choice

Assume the market is in equilibrium in the graph shown at demand D and supply S₁.If the supply curve shifts to S₂,and a new equilibrium is reached,which of the following is true?

• A) Consumer surplus increases, and total surplus increases.
• B) Consumer surplus decreases, and total surplus increases.
• C) Consumer surplus increases, and total surplus decreases.
• D) Consumer surplus decreases, and total surplus decreases.

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Definitions:

Diana Pearce

An American sociologist known for her work on poverty, homelessness, and gender issues, including the concept of the feminization of poverty.

Female Heads

Refers to women who are the main or sole leaders of a family or organization.

Women's Poverty

The state of being extremely poor, which disproportionately affects women due to various socio-economic factors.

Comparable Worth

The concept advocating for equal pay for different jobs that are considered of equal value or worth.