Other Things Held Constant,the Lower the Price of a Good

question 117

Multiple Choice

Other things held constant,the lower the price of a good:

• A) the lower the producer surplus.
• B) the greater the producer surplus.
• C) the higher the supply.
• D) the lower the supply.

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Definitions:

Pollution

The presence in or introduction into the environment of a substance or thing that has harmful or poisonous effects.

Marginal Social Benefit

The additional benefit society gains from consuming one more unit of a good or service.

Marginal Social Cost

The additional cost imposed on society as a whole by producing one extra unit of a good or service.

Pollution

The addition of pollutants to the natural surroundings, leading to harmful alterations.