Suppose that supply is upward sloping and demand is downward sloping. If there is a decrease in demand, total surplus: a) will increase. b) will decrease. c) will remain the same. d) will increase and then decrease.
Suppose that supply is upward sloping and demand is downward sloping. If there is a decrease in demand, total surplus: a) will increase. b) will decrease. c) will remain the same. d) will increase and then decrease.
Chapter4: Markets In Action
Section: Chapter Questions
Problem 5SQP
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Suppose that supply is upward sloping and demand is downward sloping. If there is a decrease in demand, total surplus:
a) will increase.
b) will decrease.
c) will remain the same.
d) will increase and then decrease.
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