For any given price, the more elastic the demand for a product is, the greater will be the consumer surplus.

Name: For any given price, the more elastic the demand for a product is, the greater will be the consumer surplus.
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Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay and what they actually pay. If demand is more elastic, consumers are more sensitive to price changes, which can reduce consumer surplus as they are less willing to pay higher prices.

For Any Given Price, the More Elastic the Demand for a Product