Figure 7-3
-Refer to Figure 7-3.When the price rises from P1 to P2,which of the following statements is not true?
A)The buyers who still buy the good are worse off because they now pay more.
B)Some buyers leave the market because they are not willing to buy the good at the higher price.
C)Buyers place a higher value on the good after the price increase.
D)Consumer surplus in the market falls.

Question

Figure 7-3 
-Refer to Figure 7-3.When the price rises from P1 to P2,which of the following statements is not true?
A)The buyers who still buy the good are worse off because they now pay more. 
B)Some buyers leave the market because they are not willing to buy the good at the higher price. 
C)Buyers place a higher value on the good after the price increase. 
D)Consumer surplus in the market falls.

Quizplus · Accepted Answer

The statement that is not true is that buyers place a higher value on the good after the price increase. This is because the increase in price does not necessarily imply that buyers value the good more. It could simply be due to a decrease in the supply of the good, resulting in a higher equilibrium price.

Figure 7-3 -Refer to Figure 7-3.When the Price Rises from P1 to from P1