As the price of a good increases,the loss in consumer surplus is larger,
A) the more elastic demand is.
B) the more money previously spent on the good.
C) the less money previously spent on the good.
D) the smaller the price increase.

Question

Quizplus · Accepted Answer

The loss in consumer surplus is larger the more money previously spent on the good because a higher expenditure indicates a greater quantity being consumed at the initial lower price, leading to a larger area under the demand curve affected by the price increase.

As the Price of a Good Increases,the Loss in Consumer