Assuming that the demand for a product is stable,an increase in price will lead to an increase in consumer surplus.

Question

Quizplus · Accepted Answer

In a stable demand scenario, an increase in price will lead to a decrease in consumer surplus. This is because consumers are willing to pay less for the product and therefore, some may decide not to buy it. The remaining consumers will have to pay more, which decreases their surplus.

Assuming That the Demand for a Product Is Stable,an Increase