When a new good is introduced, consumers have more variety from which to choose, and this in turn increases the cost of maintaining the same level of economic well-being.

Question

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When a new good is introduced, consumers have more variety from which to choose, which typically increases their economic well-being without necessarily increasing the cost of maintaining it. More variety often means consumers can find products that better match their preferences, potentially increasing their utility or satisfaction without a corresponding increase in cost.

When a New Good Is Introduced, Consumers Have More Variety