Answered: Other things held constant, the greater…

Other things held constant, the greater the price of a good the greater the consumer surplus. the higher the quantity demanded. the lower the consumer surplus. the lower the quantity demanded

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter7: Demand And Supply

Section7.2: The Demand Curve And Elasticity Of Demand

Problem 5R

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Question

Other things held constant, the greater the price of a good the greater the consumer surplus. the higher the quantity demanded. the lower the consumer surplus. the lower the quantity demanded.

Consumer’s gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price and up to the equilibrium quantity. Consumer surplus is represented by area A.

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