A resident of the U.S. owns a factory in China. Earnings from this factory would be considered as ________

The cost of production plus producer surplus is the price a seller is paid

a. True b. False Indicate whether the statement is true or false

Suppose that when the price of a 16 oz. to-go cup of gourmet coffee is $4.25, students purchase 750 cups per day. If the price decreases to $3.75 per cup, which of the following is the most likely outcome?

a. Students would purchase fewer than 750 cups per day. b. Student would continue to purchase 750 cups per day. c. Students would purchase more than 750 cups per day. d. We do not have enough information to answer this question.