A Change in the Financial Environment Will Stimulate a Search

question 71

True/False

A change in the financial environment will stimulate a search by financial institutions for innovations that are likely to be profitable.

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Definitions:

Consumer Surplus

The contrast between what consumers intend to spend on a good or service and the actual amount they part with.

Producer Surplus

The difference between how much producers are willing to accept for a good versus how much they actually receive.

Price Support

Price set by government above free-market level and maintained by governmental purchases of excess supply.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual higher market price they receive.