Which of the following is true when the price of a good or service rises?
A)Buyers who were already buying the good or service are better off.
B)Some buyers exit the market.
C)The total consumer surplus in the market increases.
D)The total value of purchases before and after the price change is the same.

Question

Quizplus · Accepted Answer

When the price of a good or service rises, some buyers who were previously buying the good or service may exit the market due to the high price. This results in a decrease in the quantity demanded of the good or service. Therefore, only some buyers who are willing to pay the higher price will purchase the good or service, and the market will have fewer buyers.

Which of the Following Is True When the Price of a Good