What happens to consumer surplus if the price of a good increases?
A)It increases.
B)It decreases.
C)It is unchanged.
D)It may increase, decrease, or remain unchanged.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price that a consumer is willing to pay for a good and the actual price paid for that good. If the price of a good increases, consumers will be less willing to pay for it, which will decrease their consumer surplus.

What Happens to Consumer Surplus If the Price of a Good