Along a given downward-sloping demand curve,an increase in the price of a good will _____ consumer surplus.
A)increase
B)decrease
C)not change
D)The answer cannot be determined without information about the supply curve.

Question

Quizplus · Accepted Answer

An increase in price will result in a decrease in consumer surplus because consumers will pay more for the same quantity of goods, resulting in a smaller area between the new price and demand curve.

Along a Given Downward-Sloping Demand Curve,an Increase in the Price