Alex is willing to pay $10,and Bella is willing to pay $8,for 1 pound of ribeye steak.When the price of ribeye steak increases from $9 to $11,
A)Alex experiences a decrease in consumer surplus,but Bella does not.
B)Bella experiences a decrease in consumer surplus,but Alex does not.
C)both Bella and Alex experience a decrease in consumer surplus.
D)neither Bella nor Alex experiences a decrease in consumer surplus.

Question

Quizplus · Accepted Answer

When the price of ribeye steak increased from $9 to $11, Alex's willingness to pay of $10 is no longer enough to cover the price, so he will no longer purchase the steak. As a result, he is experiencing a decrease in consumer surplus. On the other hand, Bella's willingness to pay of $8 is still below the new price, so she will continue to purchase the steak at the new price. Therefore, Bella does not experience a decrease in consumer surplus.

Alex Is Willing to Pay $10,and Bella Is Willing to Pay