If the demand curve in a market is stationary, consumer surplus decreases when the price in that market increases.

Question

Quizplus · Accepted Answer

When the price in a market increases, consumer surplus decreases because consumers are paying more for the same quantity of goods. If the demand curve is stationary, it means that the quantity demanded does not change in response to changes in price, so consumers continue to purchase the same quantity at a higher price, resulting in a decrease in their surplus.

If the Demand Curve in a Market Is Stationary, Consumer