All Else Held Constant,a Decrease in the Price of a Good

question 119

Multiple Choice

All else held constant,a decrease in the price of a good would necessarily

• A) increase social welfare.
• B) decrease producer surplus.
• C) decrease consumer surplus.
• D) increase demand for the good.
• E) increase producer surplus.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Market Price

The present rate at which a service or asset is available for purchase or sale on the market.

Bond Discount

The difference between the face value of a bond and its selling price, when the bond is sold for less than its face value.