Ceteris paribus, a decrease in the market price of a good will result in a(n):
A)decrease in the quantity demanded of the good.
B)increase in the quantity supplied of the good.
C)increase in the consumer surplus derived from the good.
D)decrease in the supply of the good.
E)increase in the supply of the good.

Question

Quizplus · Accepted Answer

Ceteris paribus, a decrease in the market price of a good typically results in an increase in consumer surplus because consumers are paying less for the same quantity of goods, thus deriving more benefit from their purchases at a lower cost.

Ceteris Paribus, a Decrease in the Market Price of a Good