If the cost of producing chairs decreases causing the price of chairs to decrease, consumer surplus in the chair market will
A)increase.
B)decrease.
C)remain constant.
D)increase for some buyers and decrease for other buyers.

Question

Quizplus · Accepted Answer

When the cost of producing chairs decreases, leading to a decrease in the price of chairs, consumer surplus increases because consumers are able to purchase chairs at a lower price than they were willing to pay, thus gaining more surplus from their purchases.

If the Cost of Producing Chairs Decreases Causing the Price