Which of the Following Will Cause a Decrease in Consumer

question 41

Multiple Choice

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

• A)an increase in the number of sellers of the good
• B)a decrease in the production cost of the good
• C)sellers expect the price of the good to be lower next month
• D)the imposition of a binding price floor in the market

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Definitions:

Risk

The potential for loss or adverse outcomes arising from a variety of factors, including financial, operational, reputational, or external events.

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe existing states or future outcomes.

Intuition

The ability to understand or know something immediately based on one's feelings rather than factual evidence or logical reasoning.

Availability Heuristic

Bases a decision on recent events relating to the situation at hand.