Use the Following to Answer Questions

question 61

Multiple Choice

Use the following to answer questions
Figure: Determining Surplus and Loss
-(Figure: Determining Surplus and Loss) Consider the graph.If the price is raised from $8 to $12,producer surplus:

• A) increases by $50 and deadweight loss increases by $30.
• B) increases by $50 and deadweight loss increases by $70.
• C) decreases by $50 and deadweight loss increases by $30.
• D) decreases by $190 and deadweight loss increases by $70.

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Definitions:

Price Decreases

A reduction in the cost at which goods and services are sold, typically influencing demand.

Marginal Utility

The additional satisfaction or utility a consumer gains from consuming one more unit of a good or service.

Video Game Rental

A service that allows consumers to borrow video games for a limited period of time for a fee.

Total Utility

The total satisfaction a product yields.