Which of the following will cause an increase in consumer surplus?
A)an increase in the production cost of the good
B)a technological improvement in the production of the good
C)a decrease in the number of sellers of the good
D)the imposition of a binding price floor in the market

Question

Quizplus · Accepted Answer

A technological improvement in the production of the good will shift the supply curve to the right, resulting in a lower equilibrium price and higher quantity demanded. This will increase consumer surplus as consumers are now able to purchase the same quantity of the good at a lower price.

Which of the Following Will Cause an Increase in Consumer