If the price of a product increases:
A) Consumer surplus will decrease
B) Consumer surplus will increase
C) Total revenue will definitely increase
D) Total revenue will definitely decrease

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a customer is willing to pay for a product and the actual price they pay. If the price of a product increases, the amount of consumer surplus decreases because consumers are paying more for the product and are therefore less likely to purchase it.

If the Price of a Product Increases