The introduction of a new good
A)increases the cost of maintaining the same level of economic well-being.
B)decreases the cost of maintaining the same level of economic well-being.
C)has no impact on the cost of maintaining the same level of economic well-being.
D)may increase or decrease the cost of maintaining the same level of economic well-being,depending on how expensive the new good is.

Question

Quizplus · Accepted Answer

The introduction of a new good increases the options available to consumers, which often leads to a decrease in the cost of maintaining the same level of economic well-being. This is because consumers can now choose from a wider variety of goods, which may be cheaper or better suited to their needs. An increase in consumer surplus can lead to an increase in overall economic well-being.

The Introduction of a New Good