Consumers having more money to purchase computers will most likely result in:

• A. a leftward shift in the demand curve for computers
• B. an increase in consumer surplus
• C. a reduction in the equilibrium price of computers
• D. a decrease in willingness to pay for computers

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of consumer surplus. Consumer surplus is the difference between what consumers are willing to pay for a good and what they actually pay. It measures the benefit consumers receive from purchasing a product at a market price lower than their maximum willingness to pay.
2. Step 2: Analyze the effect of consumers having more money. When consumers have more income, their purchasing power increases, which typically increases their willingness to pay for normal goods like computers.
3. Step 3: Consider the demand curve shift. An increase in consumers' income usually causes the demand curve for a normal good to shift to the right (an increase in demand), not to the left.
4. Step 4: Evaluate the impact on equilibrium price. With higher demand, the equilibrium price of computers is more likely to increase rather than decrease, assuming supply remains constant.
5. Step 5: Connect these insights to consumer surplus. Since consumers are willing to pay more and demand increases, the consumer surplus generally increases because more consumers buy the product and/or pay less than their maximum willingness to pay.