Chapter 49, Problem 7MCQ

To determine

The receiver of resulting increase in consumer surplus if there is fall in price of goods (swimsuits) and there is no change in the market demand curve.

Explanation of Solution

The receiver of resulting increase in consumer surplus are buyers who did, and did not, purchase swimsuits at the original price because if there is fall in price of goods (swimsuits) and there is no change in the market demand curve then supply will also increase with the increase in consumer surplus. And, increase in supply results in low price and high quantity.

Therefore, the correct option is e.

Economics Concept Introduction

Introduction:

Any excess in production, earning, or the supply of goods is called surplus which is more than the need.