All else equal,what happens to consumer surplus if the price of a good increases?
A)Consumer surplus increases.
B)Consumer surplus decreases.
C)Consumer surplus is unchanged.
D)Consumer surplus may increase,decrease,or remain unchanged.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good and the actual price they pay. If the price of a good increases, consumers are willing to pay less for that good which leads to a decrease in consumer surplus. Therefore, the correct answer is B.

All Else Equal,what Happens to Consumer Surplus If the Price