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

Question

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

Quizplus · Accepted Answer

Consumer surplus represents the difference between what a consumer is willing to pay for a good and what they actually have to pay for it. As the price of a good falls, consumers are able to purchase more of it for less than they were originally willing to pay, thus increasing their consumer surplus. Therefore, the correct answer is B: rises.

As the Market Price of a Good Falls, Consumer Surplus:​

As the Market Price of a Good Falls, Consumer Surplus: