Consumer surplus increases whenever the price of a good increases.

Question

Consumer surplus increases whenever the price of a good increases.
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Quizplus · Accepted Answer

Consumer surplus is the difference between the amount a consumer is willing to pay and the price they actually pay for a good. When the price of a good increases, consumer surplus decreases as consumers are no longer willing to pay as much for that good, and they may even switch to a substitute product. Therefore, the statement is false - consumer surplus does not increase when the price of a good increases.

Consumer Surplus Increases Whenever the Price of a Good Increases