Asked by Kayla Driffin on Jun 12, 2024
Verified
The lower the price, the lower the consumer surplus, all else equal.
Consumer Surplus
The cleavage between the cumulative amount that consumers are willing to disburse for a good or service and their actual expenditure.
- Attain proficiency in the concept and gauging of consumer surplus.
- Recognize the impact of market changes (supply and demand) on consumer surplus.
Verified Answer
MP
Marissa ParusJun 17, 2024
Final Answer :
False
Explanation :
Consumer surplus increases as the price decreases because consumers are paying less than what they are willing to pay for a good or service, thus increasing the difference between their willingness to pay and the actual price.
Learning Objectives
- Attain proficiency in the concept and gauging of consumer surplus.
- Recognize the impact of market changes (supply and demand) on consumer surplus.