Along a given downward-sloping demand curve,an increase in the price of a good will:
A)increase consumer surplus.
B)decrease consumer surplus.
C)have no effect on consumer surplus.
D)decrease producer surplus.

Question

Quizplus · Accepted Answer

An increase in the price of a good along a given demand curve will reduce consumer surplus as consumers will have to pay more for the same quantity of the good, resulting in a decrease in the amount of surplus they enjoy.

Along a Given Downward-Sloping Demand Curve,an Increase in the Price