Suppose there is an increase in supply that reduces market price. Consumer surplus increases because (1) consumer surplus received by existing buyers increases and (2) new buyers enter the market.

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Quizplus · Accepted Answer

An increase in supply typically lowers the market price, making goods or services cheaper for consumers. This not only increases the consumer surplus for existing buyers (since they're getting more value for a lower price) but also allows new buyers to enter the market, further increasing the overall consumer surplus.

Suppose There Is an Increase in Supply That Reduces Market