Figure 7-7 -Refer to Figure 7-7.What Happens to the Consumer Surplus If

question 45

Multiple Choice

Figure 7-7
-Refer to Figure 7-7.What happens to the consumer surplus if the price rises from $100 to $150?

• A)The new consumer surplus is half of the original consumer surplus.
• B)The new consumer surplus is 25 percent of the original consumer surplus.
• C)The new consumer surplus is double the original consumer surplus.
• D)The new consumer surplus is triple the original consumer surplus.

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Definitions:

Total Revenue

The total amount of income generated by the sale of goods or services before any expenses are subtracted.

COGS

Cost of Goods Sold, which refers to the direct costs attributable to the production of the goods sold by a company.

Economic Value Added

A measure of a company's financial performance based on the premise that true profit occurs when additional wealth is created for shareholders, beyond the cost of capital invested.