Consumer surplus increases whenever the price of a good decreases due to a rightward shift of the supply curve.

Question

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When the price of a good decreases due to a rightward shift of the supply curve, consumers are able to purchase the same amount of the good at a lower price or a higher quantity of the good at the original price. This increase in value for consumers is known as consumer surplus.

Consumer Surplus Increases Whenever the Price of a Good Decreases