Other things being equal, if the price of a good falls, the consumer surplus:
A)decreases
B)increases
C)is unchanged
D)may increase, decrease or remain unchanged

Name: Other things being equal, if the price of a good falls, the consumer surplus: A)decreases B)increases C)is unchanged D)may increase, decrease or remain unchanged
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Question

Quizplus · Accepted Answer

When the price of a good falls, the consumer surplus increases as consumers can now buy more of the good at a lower price, resulting in a greater total value gained.

Other Things Being Equal, If the Price of a Good