All else equal, what happens to consumer surplus if the price of a good decreases?

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asked Dec 17, 2018 188k views

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Theomega · Answer 1 · 2018-12-21T23:05:43+0000

This is the basics of the law of supply and demand. If the price of a good decreases then the consumer surplus will increase. It also works vice-versa. If things become cheaper more people will buy it, and if it goes up then fewer people will buy it.

All else equal, what happens to consumer surplus if the price of a good decreases?

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