If you could create a vending machine that could automatically increase the price when it detected people were more likely to buy soft drinks,
A)you could only make more money if you charged the same price for all the soft drinks.
B)you would be increasing the customer's consumer surplus.
C)you would be decreasing the customer's consumer surplus.
D)the customer's consumer surplus would not change.

Question

Quizplus · Accepted Answer

Increasing the price when people are more likely to buy the soft drinks would decrease the consumer surplus, as customers would have to pay more than what they would be willing to pay at the original price, resulting in a decreased value for their money.

If You Could Create a Vending Machine That Could Automatically