Which of the Following Statements Is Always True

question 92

Multiple Choice

Which of the following statements is always true?

• A)An increase in price will lead to an increase in producer surplus.
• B)An increase in price will lead to an increase in consumer surplus.
• C)A price ceiling will lead to an increase in consumer surplus.
• D)A price floor will lead to an increase in consumer surplus.
• E)None of the above is always true.

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Definitions:

Inputs

The resources, such as labor, materials, and capital, that are used in the production process to produce goods or services.

Output

The total amount of goods or services produced by a company, industry, or economy within a specified time period.

Total Cost Curve

A graphical representation showing the total cost of producing different levels of output in the short run or long run.

Quantity

The amount or number of units of a product, good, or service available or demanded in a market.