Consumer surplus increases as
A) the market price of a good decreases
B) firms exit the market
C) fewer consumers purchase a good
D) taxes on a good increase
E) a good is no longer available for sale

Question

Quizplus · Accepted Answer

Consumer surplus increases when the market price of a good decreases because consumers are able to purchase the good for less than what they are willing to pay, thus increasing the difference between their willingness to pay and the actual price.

Consumer Surplus Increases as