Figure 7-5
-Refer to Figure 7-5.What happens to the consumer surplus if the price rises from $100 to $150?

Name: Figure 7-5 -Refer to Figure 7-5.What happens to the consumer surplus if the price rises from $100 to $150?
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Question

Figure 7-5 
-Refer to Figure 7-5.What happens to the consumer surplus if the price rises from $100 to $150?

Quizplus · Accepted Answer

When the price rises from $100 to $150, the consumer surplus decreases significantly. The new consumer surplus is reduced to 25 percent of the original consumer surplus due to the higher price reducing the area under the demand curve that represents consumer surplus.

Figure 7-5 -Refer to Figure 7-5.What Happens to the Consumer Surplus If