As the price of a good falls,
A)the consumer surplus rises.
B)the consumer surplus falls.
C)the consumer surplus may rise or fall.
D)a change in price will not affect consumer surplus.

Question

Quizplus · Accepted Answer

When the price of a good falls, the consumer surplus increases because consumers are able to purchase the same amount of the good at a lower price, which means they have more money left over for other purchases or savings. This increased surplus represents the additional benefit that consumers receive from the lower price.

As the Price of a Good Falls