Other things equal, a fall in the market price caused by a change in supply will
A) increase consumer surplus.
B) decrease consumer surplus.
C) increase producer surplus while leaving consumer surplus unchanged.
D) decrease producer surplus while leaving consumer surplus unchanged.

Question

Quizplus · Accepted Answer

A fall in the market price caused by an increase in supply typically results in an increase in consumer surplus because consumers can now purchase the same quantity of goods at a lower price or more goods for the same expenditure, thus deriving greater utility or satisfaction.

Other Things Equal, a Fall in the Market Price Caused