If there is a decrease in demand, assuming a positively sloped supply curve and a negatively sloped demand curve, total surplus:
A) will increase.
B) will decrease.
C) will remain the same.
D) may change, but we can't tell how.

Question

Quizplus · Accepted Answer

A decrease in demand leads to a lower equilibrium price and quantity, reducing both consumer and producer surplus, thus decreasing total surplus.

If There Is a Decrease in Demand, Assuming a Positively