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Consumer Surplus and Willingness to Pay
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Consumer Surplus and Willingness to Pay
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5. Consumer and Producer Surplus; Price Ceilings and Floors / Consumer Surplus and Willingness to Pay / Problem 6
Problem 6
How does a decrease in market price affect consumer surplus?
A
Consumer surplus decreases as fewer consumers are willing to buy.
B
Consumer surplus remains unchanged as it is independent of price changes.
C
Consumer surplus decreases as the market becomes less efficient.
D
Consumer surplus increases as existing consumers gain more surplus and new consumers enter the market.
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