If there is a change in a market that leads to a reduction in consumer surplus,
A) it is still possible for economic surplus to increase.
B) it is not possible for economic surplus to increase.
C) producer surplus will necessarily increase.
D) producer surplus will necessarily decrease.
E) economic surplus will necessarily decrease.

Question

Quizplus · Accepted Answer

A reduction in consumer surplus can be offset by a larger increase in producer surplus, leading to an overall increase in economic surplus.

If There Is a Change in a Market That Leads