Figure 7-2

-Refer to Figure 7-2.When the price rises from P1 to P2,which of the following statements is not true?
A) The buyers who still buy the good are worse off because they now pay more.
B) Some buyers leave the market because they are not willing to buy the good at the higher price.
C) Buyers place a higher value on the good after the price increase.
D) Consumer surplus in the market falls.

Question

Figure 7-2
 
-Refer to Figure 7-2.When the price rises from P1 to P2,which of the following statements is not true?
A) The buyers who still buy the good are worse off because they now pay more. 
B) Some buyers leave the market because they are not willing to buy the good at the higher price. 
C) Buyers place a higher value on the good after the price increase. 
D) Consumer surplus in the market falls.

Quizplus · Accepted Answer

Statement C is not true because the increase in price does not necessarily indicate an increase in value placed by buyers on the good. It could be due to other factors such as a decrease in supply or increase in production costs. Therefore, it cannot be assumed that buyers place a higher value on the good after the price increase.

Figure 7-2 -Refer to Figure 7-2.When the Price Rises from P1 to Rises