An increase in the price of a good along a stationary demand curve
A) improves the material welfare of the buyers.
B) decreases consumer surplus.
C) improves market efficiency.
D) increases consumer surplus.

Question

Quizplus · Accepted Answer

An increase in price along a stationary demand curve reduces consumer surplus as it results in buyers paying more for the same quantity of goods. Therefore, choice B is the correct answer.

An Increase in the Price of a Good Along a Stationary