An increase in the price of a good along a stationary supply curve______________?
Correct answer: A. increase producer surplus
- A. increase producer surplus
- B. does all the things describe in these answers
- C. decrease producer surplus
- D. improves market equity
Explanation
With the supply curve fixed, a higher price increases the amount sellers receive above their minimum acceptable prices. Hence producer surplus increases.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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