When price decreases, consumer surplus
A)increases
B)remains constant
C)decreases
D)becomes negative
E)may increase or decrease

Name: When price decreases, consumer surplus A)increases B)remains constant C)decreases D)becomes negative E)may increase or decrease
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When price decreases, consumers are able to purchase more of a good or service for a lower price, which increases their benefit or surplus from the purchase. Therefore, consumer surplus increases when price decreases.

When Price Decreases, Consumer Surplus