Which of the following will cause a decrease in consumer surplus?
A)an increase in the number of sellers of the good
B)a decrease in the production cost of the good
C)sellers expect the price of the good to be lower next month
D)the imposition of a binding price floor in the market

Question

Quizplus · Accepted Answer

When a binding price floor is imposed in the market, the price of the good is forced to be higher than the equilibrium price, resulting in a decrease in the quantity demanded. As a result, some consumers who were willing to buy the good at the lower equilibrium price would not be able to afford it at the higher price, leading to a decrease in consumer surplus.

Which of the Following Will Cause a Decrease in Consumer