When the Price of a Good Increases and All Else

question 96

Multiple Choice

When the price of a good increases and all else is held constant

• A) both consumer surplus and producer surplus decrease.
• B) both consumer surplus and producer surplus increase.
• C) consumer surplus decreases.
• D) producer surplus decreases.
• E) producer surplus increases.

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Definitions:

Testosterone production

The biological process by which the male sex hormone testosterone is synthesized, primarily in the testes of males and the ovaries of females, as well as a small amount in the adrenal glands.

Programmed theories

Theories of aging that suggest that the human body ages according to a genetic timetable or a biological clock.

Genetic instructions

The information encoded in an organism's DNA that guides growth, development, and function.

Fluid intelligence

The ability to think logically and solve problems in novel situations, independent of acquired knowledge.