What happens to consumer surplus as price falls along a given demand curve?
A)It always increases.
B)It always decreases.
C)It never changes.
D)It increases only if price increases just a little.
E)It depends on the elasticity of demand and supply.

Question

Quizplus · Accepted Answer

As price falls along a given demand curve, the quantity demanded increases, leading to an increase in consumer surplus. This is because consumers are willing to pay higher prices for the same quantity of goods or services, and as the price falls, they can buy more at a lower cost. Therefore, consumer surplus always increases as price falls along a given demand curve.

What Happens to Consumer Surplus as Price Falls Along a Given