All else equal, the higher the actual price consumers must pay to purchase a product, the greater the consumer surplus.

Name: All else equal, the higher the actual price consumers must pay to purchase a product, the greater the consumer surplus.
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Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay and what they actually have to pay. As the actual price consumers must pay increases, their consumer surplus decreases. Therefore, the statement is false.

All Else Equal, the Higher the Actual Price Consumers Must