Which of the Following Is True

question 42

Multiple Choice

Which of the following is true?

• A)A lower price will increase your consumer surplus by the amount you were buying originally, times the reduction in the price.
• B)A lower price will leave unchanged your consumer surplus for each of the units you were already consuming, but will increase consumer surplus from increased purchases at the lower price.
• C)A lower price will decrease your producer surplus for each of the units you were producing, but will not change producer surplus by changing the quantity sold.
• D)A lower price will leave unchanged your producer surplus for each of the units you were producing, but will decrease producer surplus from decreased sales at the lower price.
• E)None of the above is true.

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Definitions:

Grit

A personality trait characterized by perseverance and passion for long-term goals.

Achievement Motivation

A psychological construct that drives an individual to pursue and attain goals, often characterized by persistence and effort.

Chain Migration

A social process by which immigrants from a particular town follow others from that town to a new country or city, creating a chain of migration.

Social Networking

The use of internet-based platforms and applications to create, share, or exchange information, ideas, and content among communities.