If the market price of a product increases, then the total
A) consumer surplus will decrease.
B) consumer surplus will increase.
C) revenues of sellers will deﬁnitely increase.
D) revenues of sellers will deﬁnitely decrease.

Question

Quizplus · Accepted Answer

If the market price of a product increases, consumers will be willing to purchase less of the good, and some consumers who would have been willing to purchase the good at the original lower price will no longer be willing to do so. This leads to a decrease in consumer surplus. The revenues of sellers may increase or decrease depending on the price elasticity of demand, but it is not a definite outcome.

If the Market Price of a Product Increases, Then the Total