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What can offset consumer surplus generated by lower prices?

Consumer surplus generated by lower prices can be offset by demand of product. The above answer overlooks the obvious answer, which is that the increase in the price of a product(s ) will decrease consumer surplus. This assumes of course that there is no shift in demand.


What will happen to consumer and producer surplus when a price floor is eliminated?

If the price floor was set below the equilibrium price, then the removal of this price floor would have no effect on producer and consumer surplus. If the price floor was set above the equilibrium price for that product, then prices with shift down again to the equilibrium price. Consumers would want to buy more, and producers would want to sell more, until they reach the equilibrium price and quantity. In other words all surpluses of deficits would eventually disappear.


What other factors will be affected if both the supply and demand curves shift due to changes in market conditions?

If both the supply and demand curves shift due to changes in market conditions, other factors that will be affected include the equilibrium price and quantity of the good or service, as well as the overall market efficiency and consumer surplus.


Explain the six determinants that will change shift the demand curve?

Consumer income Consumer taste Substitutes Compliments Change in expectation Number of consumer


How much does vdrinking water cost?

i) "If the demand curve is vertical, elasticity is zero"Price Elasticity of Demand captures the shift in demand for rises in prices in percentage terms. Therefore if a commodity is such that no matter what price the producer charges the consumer has no alternative but to buy it, then for any price the demand for that commodity remains unaltered, maybe an example is a monopolist salt producer. Therefore the demand curve must be vertical, no matter what the price the quantity demanded is same, hence the price elasticity is zero.


Why did civilization grow more slowly in Europe than in the feetile crescent?

Civilisation arises when there is a surplus of food, and attention can shift from subsistence to civilisation. The Fertile Crescent had that surplus, while much of Europe was less fertile.


After the war industries had to shift from producing war materials to making?

Consumer Goods.


What will shift the consumption level upward?

Factors such as an increase in disposable income, a decrease in the price of goods and services, changes in consumer preferences towards a particular product, or an increase in consumer confidence can shift the consumption level upward.


Does the change in consumer tastes lead to a movement along the demand curve or a shift in the demand curve?

A change in consumer's tastes leads to a shift in the demand curve. A change in price leads to a movement along the demand curve.


The variable that will not shift the consumption function is .?

The variable that will not shift the consumption function is the price level. While changes in income, consumer confidence, and interest rates can shift the consumption function by affecting consumer spending, the price level itself does not cause a shift; rather, it leads to movements along the consumption function as it influences the purchasing power of consumers.


What changes could cause a demand curve to shift, and how do these changes affect the direction of the shift?

Changes in factors such as consumer income, preferences, prices of related goods, and expectations can shift a demand curve. An increase in consumer income or preferences for a product can shift the demand curve to the right, indicating higher demand. Conversely, a decrease in income or preferences can shift the demand curve to the left, indicating lower demand.


What factors cause a shift of the demand curve to the right?

A shift of the demand curve to the right is caused by factors such as an increase in consumer income, changes in consumer preferences, expectations of future price increases, and the introduction of new technology or products.