If the Market Price of a Product Increases, Then the Total

question 217

Multiple Choice

If the market price of a product increases, then the total

• A)consumer surplus will decrease.
• B)consumer surplus will increase.
• C)revenues of sellers will definitely increase.
• D)revenues of sellers will definitely decrease.

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Definitions:

Marginal Utility

The incremental pleasure or benefit a person achieves by consuming an additional unit of a good or service.

Total Utility

The total satisfaction or benefit a consumer derives from consuming a particular quantity of goods or services.

Utility Schedule

A table showing the different levels of satisfaction or utility that a consumer derives from consuming different amounts of a good or service.

Worth

The value or importance of something, often measured in terms of money or utility.