Producer Surplus

question 244

Multiple Choice

Producer surplus

• A) increases if market price rises and the supply curve does not shift.
• B) decreases if market price rises and the supply curve does not shift.
• C) is equal to the maximum price consumers are willing to pay.
• D) is the same as the marginal cost.
• E) always must equal consumer surplus.

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Definitions:

Classical Economic

A school of thought in economics that emphasizes the importance of free markets, competition, and the self-regulating nature of economies.

Socioeconomic

Relating to or concerning the interaction of social and economic factors.

Philanthropic

Relating to the act of giving money, goods, time, or effort to support a charitable cause, usually over an extended period of time and to further a social good.

Whistle-blowing

The act of exposing any kind of information or activity that is deemed illegal, unethical, or not correct within an organization.