Figure 7-7
-Refer to Figure 7-7.What happens to the consumer surplus if the price rises from $100 to $150?
A)The new consumer surplus is half of the original consumer surplus.
B)The new consumer surplus is 25 percent of the original consumer surplus.
C)The new consumer surplus is double the original consumer surplus.
D)The new consumer surplus is triple the original consumer surplus.

Question

Figure 7-7 
-Refer to Figure 7-7.What happens to the consumer surplus if the price rises from $100 to $150?
A)The new consumer surplus is half of the original consumer surplus. 
B)The new consumer surplus is 25 percent of the original consumer surplus. 
C)The new consumer surplus is double the original consumer surplus. 
D)The new consumer surplus is triple the original consumer surplus.

Quizplus · Accepted Answer

When the price rises from $100 to $150, the consumer surplus decreases significantly. The new consumer surplus is reduced to 25 percent of the original consumer surplus, as the area representing consumer surplus on the graph shrinks due to the higher price.

Figure 7-7 -Refer to Figure 7-7.What Happens to the Consumer Surplus If