An increase in the consumer surplus in the market for milkshakes may result from:
A)an increase in the price of milkshakes.
B)an increase in the supply of milkshakes.
C)a decrease in the demand for milkshakes.
D)a decrease in the supply of milkshakes.

Question

Quizplus · Accepted Answer

If there is an increase in the supply of milkshakes, the price may decrease or remain the same, which would increase the consumer surplus as consumers would be able to purchase more milkshakes for the same or lower price. An increase in the price or a decrease in demand or supply would likely decrease consumer surplus.

An Increase in the Consumer Surplus in the Market for Milkshakes