Lucy often buys fish and is able to buy it for less than she is willing-to-pay.She later learns that fish has more health benefits than she realised.She now values fish even more than before.If the market price of fish does not change then:
A)Lucy's consumer surplus could go up or down
B)Lucy's consumer surplus will decrease
C)Lucy's consumer surplus will be unaffected because the price has not changed
D)Lucy's consumer surplus will increase

Question

Quizplus · Accepted Answer

Since Lucy now values fish even more than before, she is willing to pay a higher price for it. However, since the market price has not changed, she is still able to buy it for less than she is willing to pay, increasing her consumer surplus. Therefore, her consumer surplus will increase.

Lucy Often Buys Fish and Is Able to Buy It