Which of the Following Is Not True When the Price

question 92

Multiple Choice

Which of the following is not true when the price of a good or service falls?

• A)Buyers who were already buying the good or service are better off.
• B)Some new buyers,who are now willing to buy,enter the market.
• C)The total consumer surplus in the market increases.
• D)The total value of purchases before and after the price change is the same.

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Definitions:

Equilibrium Price

The price at which the quantity of a good demanded by consumers balances the quantity supplied by producers, resulting in a stable market condition.

Suppliers

Businesses or individuals that provide goods or services to another entity, often in exchange for monetary compensation.

Surpluses

Occurs when the quantity supplied of a product exceeds the quantity demanded, often leading to a drop in prices.

Price Up

An increase in the cost of goods or services in the market.