Which situation would most likely cause a DECREASE in consumer surplus in the toy market?
A)The cost of shipping increases because of higher oil prices.
B)Consumer income increases.
C)There is an unexpected baby boom.
D)A new assembly line design increases worker productivity.

Question

Quizplus · Accepted Answer

An increase in shipping costs would increase the overall price of toys, leading to a decrease in consumer surplus as consumers would be willing to pay less for the higher priced toys.

Which Situation Would Most Likely Cause a DECREASE in Consumer