Ceteris paribus, a decrease in the price of a good will cause the:
A)quantity demanded of the good to decrease.
B)quantity supplied of the good to increase.
C)consumer surplus derived from the good to increase.
D)supply of the good to decrease.

Question

Ceteris paribus, a decrease in the price of a good will cause the:
A)​quantity demanded of the good to decrease.
B)​quantity supplied of the good to increase.
C)​consumer surplus derived from the good to increase.
D)​supply of the good to decrease.

Quizplus · Accepted Answer

Ceteris paribus, a decrease in the price of a good will cause the consumer surplus derived from the good to increase because consumers are getting the good for a lower price than they were willing to pay, thus increasing the difference between their willingness to pay and the actual price.

Ceteris Paribus, a Decrease in the Price of a Good