If there is a decrease in demand, total surplus:
A)will increase.
B)will decrease.
C)will remain the same.
D)may change, but we can't tell how.

Question

Quizplus · Accepted Answer

When there is a decrease in demand, the equilibrium price and quantity will decrease. This means that producers will receive less revenue, resulting in a decrease in consumer and producer surplus, leading to a decrease in total surplus.

If There Is a Decrease in Demand, Total Surplus