If a Perfectly Competitive Market Is in Equilibrium and Market

question 5

Multiple Choice

If a perfectly competitive market is in equilibrium and market demand decreases,which of the following would happen?

• A)both producer and consumer surplus would increase
• B)both producer and consumer surplus would decrease
• C)producer surplus would decrease and consumer surplus would increase
• D)producer surplus would increase and consumer surplus would decrease
• E)producer and consumer surplus would remain unchanged

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Definitions:

Qualitative Research

A research strategy focusing on understanding concepts, thoughts, or experiences through in-depth collection and analysis of non-numerical data like text, audio, or video.

Ethnographic Study

A qualitative research method that involves the systematic study of people and cultures from within, through observation and participation.

Grounded Theory

A research method that involves constructing theories through systematic gathering and analysis of data, primarily used in qualitative research.

Research Designs

The overall strategy or framework for planning, conducting, and analyzing a study to answer specific research questions or test hypotheses.