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Questions and Answers
What happens to consumer surplus if the price of a good falls?
What happens to consumer surplus if the price of a good falls?
- It increases (correct)
- It remains unchanged
- It fluctuates
- It decreases
Why does consumer surplus increase when the price of a good falls?
Why does consumer surplus increase when the price of a good falls?
- Demand decreases
- Consumer income decreases
- The quantity demanded increases (correct)
- The quantity demanded decreases
How does a decrease in the price of a good affect consumer behavior?
How does a decrease in the price of a good affect consumer behavior?
- Consumers buy more of the good (correct)
- Consumers stop buying the good
- Consumers buy less of the good
- Consumers start buying other goods
