-The above figure shows the market demand curve for telecommunication while driving one's car (time spent on the car phone).The current price is 35¢ per minute.If the price were to increase by ten cents per minute,consumer surplus would
A)fall to $820.
B)fall by $84.
C)fall by $58.
D)fall to $369.

Question

-The above figure shows the market demand curve for telecommunication while driving one's car (time spent on the car phone).The current price is 35¢ per minute.If the price were to increase by ten cents per minute,consumer surplus would
A)fall to $820. 
B)fall by $84. 
C)fall by $58. 
D)fall to $369.

Quizplus · Accepted Answer

Consumer surplus decreases when the price of a good increases because the area representing consumer surplus on a demand curve is the area above the price level and below the demand curve. An increase in price reduces this area, leading to a decrease in consumer surplus. The specific amount by which consumer surplus decreases depends on the shape of the demand curve and the size of the price increase.

-The Above Figure Shows the Market Demand Curve for Telecommunication