Graph 7-2 -Refer to Graph 7-2. When the price rises from P₁ to P₂, which of the following is NOT true? A) the buyers who still buy the good are worse off because they now pay more B) some buyers leave the market because they are not willing to buy the good at the higher price C) the total value of what is now purchased by buyers is actually higher D) consumer surplus in the market falls

Question

Quizplus · Accepted Answer

When the price rises from P1 to P2, the total value of what is purchased by buyers is not necessarily higher because the quantity demanded typically decreases, and some buyers leave the market.

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