Which of the following is true?
A) A lower price will increase your consumer surplus by the amount you were buying originally, times the reduction in the price.
B) A lower price will leave unchanged your consumer surplus for each of the units you were already consuming, but will increase consumer surplus from increased purchases at the lower price.
C) A lower price will decrease your producer surplus for each of the units you were producing, but will not change producer surplus by changing the quantity sold.
D) A lower price will leave unchanged your producer surplus for each of the units you were producing, but will decrease producer surplus from decreased sales at the lower price.
E) None of the above is true.
Correct Answer:
Verified
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