Asked by
Shananie Shimange
on Dec 11, 2024
Verified
Ceteris paribus, an increase in the price of a good will cause the
A) quantity demanded of the good to increase.
B) quantity supplied of the good to decrease.
C) producer surplus derived from the good to increase.
D) supply of the good to decrease.
Ceteris Paribus
A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable change.
Producer Surplus
The gap between what sellers are prepared to take for a product or service and the actual amount they get.
- Familiarize with the relationship between price shifts and the adjustment in quantity demanded and supplied.
- Apprehend the notion of elasticity in the frameworks of demand and supply.
Verified Answer
MP
Learning Objectives
- Familiarize with the relationship between price shifts and the adjustment in quantity demanded and supplied.
- Apprehend the notion of elasticity in the frameworks of demand and supply.