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12 Jan 2019
9. Other things held constant, consumer surplus decreases as:
The price of a good decreases.
The price of a good increases.
The supply curve shifts to the right.
None of the above.
9. Other things held constant, consumer surplus decreases as:
| The price of a good decreases. | |
| The price of a good increases. | |
| The supply curve shifts to the right. | |
| None of the above. |
Jean KeelingLv2
13 Jan 2019
Related textbook solutions
Related questions
a. State the law of supply.
| Ā | Quantity supplied rises as price increases, other things are constant. Quantity supplied falls as price decreases, other things are constant. |
| Ā | Supply increases as price falls. Supply decreases as price rises. |
| Ā | Supply increases as price increases. Supply decreases as price decreases. |
| Ā | Quantity supplied rises as price falls, other things constant. Quantity supplied falls as price increases, other things are constant. |
b. Why is price directly related to quantity supplied?
| Ā | As price rises, consumers substitute other goods whose price has not risen. |
| Ā | As price rises, suppliers rearrange their activities to supply more of that good to take advantage of the higher price. |
| Ā | As price falls, suppliers rearrange their activities to supply more of that good to take advantage of the lower price. |
| Ā | As price rises, suppliers rearrange their activities to supply more of a substitute good to take advantage of the higher price. |
