-Refer to the diagram above.Which of the following will result in the largest increase in consumer surplus?
A) A downward shift of the supply curve.
B) An increase in the cost of production.
C) A decrease in labour productivity.
D) An increase in the wage rate in this particular market.
E) Supply becoming more and more inelastic as prices increase above OB.

Question

-Refer to the diagram above.Which of the following will result in the largest increase in consumer surplus?
A) A downward shift of the supply curve. 
B) An increase in the cost of production. 
C) A decrease in labour productivity. 
D) An increase in the wage rate in this particular market. 
E) Supply becoming more and more inelastic as prices increase above OB.

Quizplus · Accepted Answer

A downward shift of the supply curve typically indicates a decrease in production costs, leading to a lower market price and increased quantity, which increases consumer surplus.

-Refer to the Diagram Above