Suppose That the Market Price for Pizzas Increases

question 71

Multiple Choice

Suppose that the market price for pizzas increases.The increase in producer surplus comes from the benefit of the higher prices to

• A)only existing sellers who now receive higher prices on the pizzas they were already selling.
• B)only new sellers who enter the market because of the higher prices.
• C)both existing sellers who now receive higher prices on the pizzas they were already selling and new sellers who enter the market because of the higher prices.
• D)Producer surplus does not increase;it decreases.

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Definitions:

Internal Conflicts

Psychological struggles within the mind of an individual, stemming from opposing desires, beliefs, or impulses.

Reality Principle

A psychoanalytic concept that refers to the ability of the mind to assess the external world and act upon it accordingly, rather than purely on the basis of the pleasure principle.

Instinctual Needs

Fundamental, innate drives or motivations necessary for survival, such as hunger or reproduction.

Pleasure Principle

The driving force of the id that seeks immediate gratification of all desires, wants, and needs.