As People Buy More and More of a Service,their Consumer

question 35

Multiple Choice

As people buy more and more of a service,their consumer surplus

• A)increases.
• B)decreases.
• C)falls to zero.
• D)becomes negative.

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Definitions:

Liability

Any type of financial debt or obligation that a company or individual owes, which must be settled in the future through the transfer of assets, provision of services, or other forms of payment.

Asset

Resources owned by a business or individual that have economic value and can be used to meet debts, commitments, or legacies.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership interest in the company.

Dividends

Dividends are a portion of a company's earnings distributed to its shareholders as a reward for their investment in the company.