Total Surplus in a Market Will Increase When the Government

question 11

Multiple Choice

Total surplus in a market will increase when the government

• A)imposes a binding price floor or a binding price ceiling on that market.
• B)imposes a tax on that market.
• C)Both a and b are correct.
• D)Neither a nor b is correct.

---

Definitions:

Synergistic Effects

The interaction of two or more substances or factors that produce a combined effect greater than the sum of their separate effects.

Individual Effects

Refers to the impacts or results of an activity, phenomenon, or intervention on a single person, contrasting with effects on groups or populations.

Tolerance

The process by which an individual's physiological response to a substance decreases with repeated use, necessitating larger amounts to achieve the same effect.

Increased Amounts

Refers to a quantity or volume of something becoming larger or greater than before.