As a result of a decrease in price,
A)new buyers enter the market, increasing consumer surplus.
B)new buyers enter the market, decreasing consumer surplus.
C)existing buyers exit the market, increasing consumer surplus.
D)existing buyers exit the market, decreasing consumer surplus.

Question

Quizplus · Accepted Answer

When the price of a good decreases, it becomes more affordable to a larger group of people. This attracts new buyers to the market, who benefit from the lower price, thus increasing the overall consumer surplus. Consumer surplus is the difference between what consumers are willing to pay and what they actually pay.

As a Result of a Decrease in Price