Dallas buys strawberries, and he would be willing to pay more than he now pays. Suppose that Dallas has a change in his tastes such that he values strawberries more than before. If the market price is the same as before, then
A) Dallas's consumer surplus would be unaffected.
B) Dallas's consumer surplus would increase.
C) Dallas's consumer surplus would decrease.
D) Dallas would be wise to buy fewer strawberries than before.

Question

Quizplus · Accepted Answer

If Dallas now values strawberries more, then his willingness to pay for them has increased. If the market price remains the same, then he can now buy the strawberries for less than he is willing to pay, which increases his consumer surplus. Therefore, option B is the best choice. Option A is incorrect because if Dallas values strawberries more, his consumer surplus should increase if the market price does not change. Option C is incorrect because a change in tastes would increase consumer surplus, not decrease it. Option D is irrelevant and not supported by the information given in the question.

Dallas Buys Strawberries, and He Would Be Willing to Pay