Along a Given Upward-Sloping Supply Curve,a Decrease in the Price

question 151

Multiple Choice

Along a given upward-sloping supply curve,a decrease in the price of a good will _____ producer surplus.

• A)increase
• B)decrease
• C)have no effect on
• D)It's impossible to tell what will happen to producer surplus.

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Definitions:

Creative Destruction

A concept in economics introduced by Joseph Schumpeter, where innovation leads to old technologies or products being replaced by new and more efficient ones, driving economic growth.

Derived Demand

The demand for a resource that depends on the demand for the products it helps to produce.

Distribution Of Income

The way in which total income is shared among different individuals or groups in an economy.

Market System

Here, economic decisions about where to invest, what and how much to produce, and how to distribute goods are made based on supply and demand curves, with pricing for these goods and services being freely adjusted in a market-based pricing structure.