Asked by Michael Singgih on May 07, 2024

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(Figure: Consumer Surplus III) In the figure Consumer Surplus III,when the price rises from $30 to $35,consumer surplus _____ for a total consumer surplus of _____.

A) decreases by $15;$34
B) increases by $15;$64
C) increases by $25;$74
D) decreases by $5;$44

Consumer Surplus

The disparity between consumers' theoretical expenditure on a good or service and their practical expenditure.

  • Compute the variations in consumer surplus resulting from price fluctuations.
  • Identify the effects of market equilibrium changes on consumer and producer surplus.
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CS
Claudia SerranoMay 14, 2024
Final Answer :
A
Explanation :
When the price rises from $30 to $35, the area representing consumer surplus decreases because consumers are paying more for the same quantity of goods. The decrease in consumer surplus is calculated based on the change in the area under the demand curve but above the new price level. The specific amounts ($15 decrease to a total of $34) would be determined by the specifics of the demand curve and the price change in the figure referenced.