Assume the Market Is in Equilibrium in the Graph Shown

question 29

Multiple Choice

Assume the market is in equilibrium in the graph shown at demand D and supply S₁. If the supply curve shifts to S₂, and a new equilibrium is reached, which of the following is true?

• A) Consumer surplus increases, and total surplus increases.
• B) Consumer surplus decreases, and total surplus increases.
• C) Consumer surplus increases, and total surplus decreases.
• D) Consumer surplus decreases, and total surplus decreases.

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Definitions:

Prompt Delivery

Quick and efficient provision or supply of goods, services, or information.

Negative News

Information that is unfavorable or disappointing, often requiring careful delivery to minimize impact.

Element of Apology

A component of communication expressing regret or sorrow for actions or mistakes, often seeking forgiveness.

Meet Expectations

To achieve or satisfy the standard of quality or level of performance that has been established or anticipated.