An Increase in the Consumer Surplus in the Market for Milkshakes

question 64

Multiple Choice

An increase in the consumer surplus in the market for milkshakes may result from a(n) _____ in the _____ of milkshakes.

• A)increase;price
• B)increase;supply
• C)decrease;demand
• D)decrease;supply

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Definitions:

Comparative Advantage

Comparative Advantage is an economic theory suggesting that countries should produce and export goods for which they have a lower opportunity cost compared to other countries.

Opportunity Cost

The forgone value of what you give up when you make a choice.

Total Output

The aggregate quantity of goods and services produced within an economy over a specific period, reflecting the economy's overall productivity.

Comparative Advantage

The ability of an entity to produce a good or offer a service at a lower opportunity cost than another.