As the market price of a good falls due to an increase in supply,consumer surplus:
A) falls.
B) rises.
C) does not change.
D) can either fall, rise, or stay the same.

Question

Quizplus · Accepted Answer

When the market price of a good falls due to an increase in supply, consumers can buy the good at a lower price, which increases their consumer surplus. Therefore, consumer surplus rises.

As the Market Price of a Good Falls Due to an Increase