All else equal, an increase in supply will cause an increase in consumer surplus.

Name: All else equal, an increase in supply will cause an increase in consumer surplus.
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Question

Quizplus · Accepted Answer

When supply increases, the price of the good typically decreases because there is more of the good available. This decrease in price allows consumers to purchase the good at a lower price, increasing the consumer surplus, which is the difference between what consumers are willing to pay and what they actually pay.

All Else Equal, an Increase in Supply Will Cause an Increase