When the Demand for a Good Increases and the Supply

question 44

Multiple Choice

When the demand for a good increases and the supply of the good remains unchanged, consumer surplus

• A)decreases.
• B)is unchanged.
• C)increases.
• D)may increase, decrease, or remain unchanged.

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Definitions:

Promissory Note

A financial document in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand of the payee, under specific terms.

Account Receivable

Resources that a company has yet to receive payment for from customers, regarding delivered goods or services.

Interest Revenue

Earnings received through the act of providing loans or putting money into assets that generate interest.

Notes Receivable

Short-term or long-term financial assets representing the promise of another party to pay a specific sum of money at a future date.