Which of the following is true when the price of a good falls?
A)Consumer surplus always increases.
B)Consumer surplus always decreases.
C)Consumer surplus never changes.
D)Producer surplus increases.
E)Producer surplus remains unchanged.

Question

Quizplus · Accepted Answer

When the price of a good falls, consumer surplus always increases because consumers are able to purchase the good at a lower price, thus gaining more benefit from their purchases than they would at a higher price.

Which of the Following Is True When the Price of a Good