Figure 7-1

-Refer to Figure 7-1.Which does NOT occur when the price rises from P₁ to P₂
A)The buyers who still buy the good are worse off because they now pay more.
B)Some buyers leave the market because they are not willing to buy the good at the higher price.
C)The total value of what is now purchased by buyers is actually higher.
D)Consumer surplus in the market falls.

Question

Figure 7-1
 
-Refer to Figure 7-1.Which does NOT occur when the price rises from P₁ to P₂
A)The buyers who still buy the good are worse off because they now pay more. 
B)Some buyers leave the market because they are not willing to buy the good at the higher price. 
C)The total value of what is now purchased by buyers is actually higher. 
D)Consumer surplus in the market falls.

Quizplus · Accepted Answer

When the price rises from P₁ to P₂, the total value of what is now purchased by buyers may actually be higher, meaning that the revenue of sellers may increase despite the reduction in quantity demanded. Therefore, option C is the correct answer. Option A and D are true as consumer surplus falls, and buyers who still buy the good are worse off as they pay more. Option B is true as some buyers may leave the market as they are not willing to buy the goods at a higher price.

Figure 7-1 -Refer to Figure 7-1.Which Does NOT Occur When the Price