If supply decreases and its slope remains the same, consumer surplus:
A) increases.
B) decreases.
C) stays the same.
D) cannot be determined given the information provided.

Question

Quizplus · Accepted Answer

When supply decreases while the demand curve is unchanged, the equilibrium price increases. Therefore, consumers will pay more for the same quantity of goods, resulting in a decrease in consumer surplus.

If Supply Decreases and Its Slope Remains the Same, Consumer