When the market price rises,the consumers' consumer surplus ________.When the market price falls,the consumers' consumer surplus ________.
A) decreases; increases
B) decreases; decreases
C) increases; increases
D) increases; decreases
E) does not change; increases

Question

Quizplus · Accepted Answer

When the market price rises, consumers' consumer surplus decreases because they are either paying more for the same quantity of goods or buying less quantity for the same amount of money. Conversely, when the market price falls, consumers' consumer surplus increases because they can either buy more quantity for the same amount of money or pay less for the same quantity of goods.

When the Market Price Rises,the Consumers' Consumer Surplus ________