Figure 7-3
-Refer to Figure 7-3. When the price rises from P1 to P2, consumer surplus
A) increases by an amount equal to A.
B) decreases by an amount equal to B+C.
C) increases by an amount equal to B+C.
D) decreases by an amount equal to d.

Question

Figure 7-3 
-Refer to Figure 7-3. When the price rises from P1 to P2, consumer surplus
A) increases by an amount equal to A. 
B) decreases by an amount equal to B+C. 
C) increases by an amount equal to B+C. 
D) decreases by an amount equal to d.

Quizplus · Accepted Answer

When the price rises from P1 to P2, the consumer surplus decreases by the area that was previously under the demand curve and above the new price level, which is represented by the area B+C.

Figure 7-3 -Refer to Figure 7-3. When the Price Rises from P1