According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A) consumer surplus will decrease from (A + B +
C) to (B +
C) only.
B) consumer surplus will increase from (A + B +
C) to A only.
C) consumer surplus (B +
C) will transfer to producers.
D) consumer surplus will decrease by (B +

Question

According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A) consumer surplus will decrease from (A + B + 
C) to (B + 
C) only. 
B) consumer surplus will increase from (A + B + 
C) to A only. 
C) consumer surplus (B + 
C) will transfer to producers. 
D) consumer surplus will decrease by (B +

Quizplus · Accepted Answer

Moving from the equilibrium price to a higher price will result in a decrease in consumer surplus. Consumer surplus is the area above the price line and below the demand curve, so when the price increases to $10, the consumer surplus will decrease by the areas B and C, which represent the difference between what consumers were willing to pay at the equilibrium price and what they would have to pay at the new price. Therefore, the correct answer is choice D.

According to the Graph Shown, If the Market Goes from Equilibrium