The ________ surplus will rise if the price of the good ________.
A)consumer;rises
B)consumer;falls
C)producer;falls
D)total;rises

Question

Quizplus · Accepted Answer

When the price of a good falls, the consumer surplus will rise because consumers are able to purchase more of the good or service for less money. This creates a larger gap between the maximum amount that consumers are willing to pay (which they still pay) and the price they actually pay, resulting in a larger consumer surplus. The other options are incorrect because a producer surplus would typically rise if the price of the good rose, and there is no such thing as a "total" surplus.

The ________ Surplus Will Rise If the Price of the Good