Which of the following will cause a decrease in consumer surplus?
a. an increase in the number of sellers of the good
b. a decrease in the production cost of the good
c. sellers expect the price of the good to be lower next month
d. the imposition of a binding price floor in the market
d
Economics
You might also like to view...
Cartels are inherently self-destructive because each member firm has the incentive to cheat on the cartel agreement
Indicate whether the statement is true or false
Economics
If, after careful analysis, an economist concludes that there has been a market failure, which of the following possible corrective actions might the economist favor? Why?
a. prohibiting the activity b. charging fees for continuing the activity c. requiring that the public be informed of the activity d. government purchase of the item for the public
Economics