Suppose that Dylan has a change in his tastes such that he values avocados more than before.If the market price is the same as before,then what would happen to Dylan
A)Dylan's consumer surplus would increase since his willingness to pay decreases.
B)Dylan's consumer surplus would increase since his willingness to pay increases.
C)Dylan's consumer surplus would decrease since his willingness to pay decreases.
D)Dylan's consumer surplus would decrease since his willingness to pay increases.

Question

Quizplus · Accepted Answer

If Dylan values avocados more than before, his willingness to pay for them will increase. If the market price remains the same, Dylan will be able to purchase avocados at the same price as before, but now getting a higher level of satisfaction from each unit consumed. Therefore, his consumer surplus will increase.

Suppose That Dylan Has a Change in His Tastes Such