Answer to Question #59330 in Microeconomics for Bob

Question #59330
Consider a particular market-clearing price and quantity under a perfectly competitive equilibrium. As the demand curve at this point becomes more inelastic, the consumer surplus in the market tends to a. increase. b. decrease. c. remain the same. d. We do not have enough information to answer this question.
1
Expert's answer
2016-04-23T07:02:06-0400
a. increase.

Consumer surplus is an economic measure of consumer satisfaction, which is calculated by analyzing the difference between what consumers are willing to pay for a good or service relative to its market price. When demand curve becomes more inelastic the price what consumers are willing to pay increases, so consumer surplus increases too.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS
paypal