Graph 7-2 -Refer to Graph 7-2. When the price rises from P₁ to P₂, consumer surplus: A) increases by an amount equal to A B) decreases by an amount equal to B + C C) increases by an amount equal to B + C D) decreases by an amount equal to C

Question

Quizplus · Accepted Answer

When the price rises from P1 to P2, the consumer surplus decreases by the area between the two prices and the demand curve, which is B + C.

Graph 7-2 -Refer to Graph 7-2. When the Price Rises from P1

Graph 7-2 -Refer to Graph 7-2. When the Price Rises from P₁