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Answer to Question #47810 in Microeconomics for Yoyo

Question #47810
The increase in consumer surplus from a price decrease is equal to the price difference multiplied by the new quantity. Explain in detail why this is true,false or uncertain.
Expert's answer
It is false, because the increase in consumer surplus from a price decrease is shown as trapezoid, so it is equal to the price difference multiplied by the half of the old and new quantity sum (formula for trapezoid square) - S = (P1 - P2)*(Q1 + Q2)/2.

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