Use the figure below to answer the following questions. Figure 5.2.2
-Consider the demand curve in Figure 5.2.2.If the price rises from $4 to $11 a unit,consumer surplus
A)decreases by $73.50.
B)increases by $73.50.
C)decreases by $21.00.
D)increases by $21.00.
E)decreases by $24.50.

Question

Use the figure below to answer the following questions.  Figure 5.2.2
-Consider the demand curve in Figure 5.2.2.If the price rises from $4 to $11 a unit,consumer surplus
A)decreases by $73.50. 
B)increases by $73.50. 
C)decreases by $21.00. 
D)increases by $21.00. 
E)decreases by $24.50.

Quizplus · Accepted Answer

Consumer surplus decreases when the price increases because the area representing consumer surplus (the area under the demand curve and above the price) becomes smaller. The specific amount of decrease would depend on the shape of the demand curve and the initial and final prices, but without seeing Figure 5.2.2, the principle that consumer surplus decreases with a price increase is what leads to the conclusion.

Use the Figure Below to Answer the Following Questions