Asked by Rhonda Golden on Jul 27, 2024
Verified
When there is a bountiful harvest of grapefruit,assuming that the demand curve for grapefruit is downward-sloping,total consumer surplus in the grapefruit market:
A) will increase.
B) will decrease.
C) will remain the same.
D) may change,but we can't tell how.
Consumer Surplus
The gap between the total price consumers are ready to pay for a good or service and what they actually spend on it.
Grapefruit
A citrus fruit known for its slightly bitter and sour taste, commonly used in juices, culinary dishes, and as a diet staple.
- Identify the influences that bring about fluctuations in consumer surplus.
- Assess the influence of external factors like harvest variations and policy adjustments on market surplus.
Verified Answer
JD
Jarrod DavisJul 29, 2024
Final Answer :
A
Explanation :
When there is a bountiful harvest of grapefruit, this will lead to an increase in the supply of grapefruit, causing the equilibrium price to decrease. This decrease in price will result in an increase in consumer surplus, as consumers are able to purchase more grapefruit at a lower price, resulting in a higher overall level of satisfaction.
Learning Objectives
- Identify the influences that bring about fluctuations in consumer surplus.
- Assess the influence of external factors like harvest variations and policy adjustments on market surplus.
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