For a given market demand curve, if the market clearing price decreases, then the amount of consumer surplus will
A)decrease.
B)increase.
C)become negative.
D)none of the above due to insufficient information.

Question

Quizplus · Accepted Answer

When the market clearing price decreases, it means that consumers can now purchase the product at a lower price than before. This results in an increase in consumer surplus because consumers are able to enjoy the same amount of product, but at a lower price, generating more surplus. Therefore, the correct choice is B.

For a Given Market Demand Curve, If the Market Clearing