Ceteris paribus, an increase in the price of a good will cause the
A) quantity demanded of the good to increase.
B) quantity supplied of the good to decrease.
C) consumer surplus derived from the good to decrease.
D) demand of the good to increase.

Question

Quizplus · Accepted Answer

An increase in the price of a good, ceteris paribus, typically leads to a decrease in consumer surplus because consumers either pay more for the same quantity or buy less of the good.

Ceteris Paribus, an Increase in the Price of a Good