Asked by Wahidah Mat Nasir on Jul 13, 2024
Verified
An increase in the consumer surplus in the market for milkshakes may result from a(n) _____ in the _____ of milkshakes.
A) increase;price
B) increase;supply
C) decrease;demand
D) decrease;supply
Consumer Surplus
The economic benefit or satisfaction received by consumers when they pay a price lower than what they are willing to pay.
Milkshakes
A sweet beverage made by blending milk, ice cream, and flavorings or sweeteners such as butterscotch, caramel sauce, or chocolate syrup.
- Understand the concept of consumer surplus and how it is impacted by price changes.
- Comprehend the factors that lead to changes in consumer surplus.
Verified Answer
LD
LaTinia DonaldJul 20, 2024
Final Answer :
B
Explanation :
An increase in the supply of milkshakes, assuming demand remains constant, typically leads to a decrease in the price of milkshakes. This decrease in price allows consumers to enjoy more milkshakes for the same amount of money, thereby increasing consumer surplus.
Learning Objectives
- Understand the concept of consumer surplus and how it is impacted by price changes.
- Comprehend the factors that lead to changes in consumer surplus.
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