________ in consumer surplus occurs when the price of a good ________.
A) A decrease; decreases and consumers buy less of the good at the cheaper price
B) An increase; increases but the relative price does not change
C) An increase; decreases and consumers can buy more of the good at the lower price
D) A decrease; increases and the paradox of value is no longer valid
E) An increase; decreases and consumer efficiency declines

Question

Quizplus · Accepted Answer

An increase in consumer surplus occurs when the price of a good decreases and consumers are able to buy more of the good at the lower price. This is because as prices decrease, consumers are able to purchase more of the good while still paying less than they were willing to pay. As a result, their surplus (the difference between what they are willing to pay and what they actually pay) increases.

________ in Consumer Surplus Occurs When the Price of a Good