If the price of a good increases,________.
A) the budget constraint shifts to the right
B) the budget constraint shifts to the left
C) consumer surplus increases
D) consumer surplus decreases

Question

Quizplus · Accepted Answer

When the price of a good increases, consumer surplus decreases because consumers either pay more for the same quantity or buy less of the good, reducing the difference between what they are willing to pay and what they actually pay.

If the Price of a Good Increases,________