-The above figure shows the market demand curve for mobile telecommunications (time spent on a mobile phone) . The current price is $0.35 per minute. If the price were to increase by ten cents per minute, consumer surplus would

Question

Quizplus · Accepted Answer

Consumer surplus decreases when the price of a good increases because the area representing consumer surplus on a demand curve is the area above the price level and below the demand curve. An increase in price reduces this area, thus reducing consumer surplus. The specific amount by which consumer surplus decreases depends on the shape of the demand curve and the magnitude of the price increase.

-The Above Figure Shows the Market Demand Curve for Mobile