Refer to Graph 7-2.When the price rises from P₁ to P₂, which of the following is NOT true?
A)the buyers who still buy the good are worse off because they now pay more
B)some buyers leave the market because they are not willing to buy the good at the higher price
C)the total value of what is now purchased by buyers is actually higher
D)consumer surplus in the market falls

Question

Quizplus · Accepted Answer

When the price rises from P₁ to P₂, the buyers who still buy the good are worse off because they now pay more (A), some buyers leave the market because they are not willing to buy the good at the higher price (B), and consumer surplus in the market falls (D), but the total value of what is now purchased by buyers is not actually higher (C). This is because the higher price reduces the quantity of the good demanded and consumed, which offsets the effect of the higher price on total value.