If the price of a good decreases due to an increase in supply, then consumer surplus will decrease.

Name: If the price of a good decreases due to an increase in supply, then consumer surplus will decrease.
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Question

Quizplus · Accepted Answer

When the price of a good decreases due to an increase in supply, consumer surplus actually increases because consumers are able to purchase the same amount of the good at a lower price or purchase more of the good for the same price. This results in a gain in consumer surplus.

If the Price of a Good Decreases Due to an Increase