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liraira [26]
1 year ago
12

when the price rises from p1 to p2, consumer surplus a. increases by an amount equal to a. b. decrease by an amount equal to c.

c. increase by an amount equal to b c. d. decrease by an amount equal to b c.
Business
1 answer:
aleksandrvk [35]1 year ago
6 0

When the price rises from P1 to P2, consumer surplus decreases by an amount equal to B + C.

Consumer surplus, also known as buyers' surplus, refers to an economic measurement of consumer advantages that arises from market competition. It occurs when the actual price for a product or service that consumers are paying is less than the price, they are willing to pay. The changes in price affect the consumer surplus, as consumer surplus always increases as the price of a good or service decreases, and decreases as the price of a good or service increase. Visually, it is illustrated by economists as the area under the demand curve between the market price and what consumers would be willing to pay. In this case, that is represented by sum of B and C.

Note: The question is incomplete. It does not contain the figure (which is attached).

Learn more about Consumer surplus:

brainly.com/question/13573671

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