According to the graph shown,if the market goes from equilibrium to having its price set at $10 then:
A) consumer surplus will decrease from (A + B +
C) to (B +
C) only.
B) consumer surplus will increase from (A + B +
C) to A only.
C) consumer surplus (B +
C) will transfer to producers.
D) consumer surplus will decrease by (B +

Question

According to the graph shown,if the market goes from equilibrium to having its price set at $10 then:
A) consumer surplus will decrease from (A + B + 
C) to (B + 
C) only. 
B) consumer surplus will increase from (A + B + 
C) to A only. 
C) consumer surplus (B + 
C) will transfer to producers. 
D) consumer surplus will decrease by (B +

Quizplus · Accepted Answer

If the market goes from equilibrium to having its price set at $10, the quantity demanded (Qd) will decrease from Q1 to Q2, which will increase the quantity supplied (Qs) from Q1 to Q3. This will create a surplus of goods in the market, leading to a decrease in price to reach the new equilibrium point.

As a result of this change, consumer surplus will decrease by the area of triangle (B + C), which is the difference between the original consumer surplus (A + B + C) and the new consumer surplus (A). Therefore, the correct answer is D.

According to the Graph Shown,if the Market Goes from Equilibrium