For a given market demand curve, if the market clearing price decreases, then the amount of consumer surplus will

A) decrease.
B) increase.
C) become negative.
D) none of the above due to insufficient information.

B

Economics

You might also like to view...

The marginal propensity to save plus the marginal propensity to consume always equals 1

a. True b. False Indicate whether the statement is true or false

Economics

For all goods other than those that are addictive, and assuming that the quantity consumed is not so large that the last units consumed generate negative marginal utilities, we can say that, for the consumer, as more of the good is consumed, its marginal utility _____ while its total utility _____

a. increases; decreases b. decreases; increases c. increases; increases d. decreases; decreases e. no general rule can be made here

Economics