Asked by Walter Clark on Jul 14, 2024
Verified
If the demand curve for ice cream is downward-sloping and the supply of it decreases,there is _____ in consumer surplus.
A) an increase
B) a decrease
C) no change
D) It's impossible to tell what will happen to consumer surplus.
Consumer Surplus
The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually do pay.
Ice Cream
A frozen dessert made from dairy products, such as milk and cream, combined with flavors and sweeteners.
- Attain knowledge regarding the concept of consumer surplus and how price alterations influence it.
- Grasp the reasons leading to modifications in consumer surplus.
Verified Answer
ZK
Zybrea KnightJul 15, 2024
Final Answer :
B
Explanation :
When the supply of ice cream decreases, the equilibrium price will increase, resulting in a decrease in consumer surplus for the portion of the demand curve that lies above the new equilibrium price.
Learning Objectives
- Attain knowledge regarding the concept of consumer surplus and how price alterations influence it.
- Grasp the reasons leading to modifications in consumer surplus.
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