A decrease in price along the elastic segment of a demand curve will
A)increase total utility, marginal utility, consumer surplus, and consumer expenditure
B)decrease total utility, consumer surplus, and consumer expenditure and increase marginal utility
C)decrease total utility and consumer surplus and increase consumer expenditure and marginal utility
D)increase consumer surplus through a decrease in consumer expenditure
E)decrease consumer surplus through an increase in consumer expenditure

Question

Quizplus · Accepted Answer

When price decreases along the elastic segment of a demand curve, quantity demanded increases significantly, leading to an increase in total utility, consumer surplus, and consumer expenditure. Marginal utility may also increase as more units are consumed.

A Decrease in Price Along the Elastic Segment of a Demand