Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Transcribed Image Text:Price
P₂
P₁
O
A
B
C
E
Demand
Quantity
Refer to Figure 7-1. Which does NOT occur when the
rises from P1 to P2?
The buyers who still buy the good are worse off because they now pay more.
Consumer surplus in the market falls.
The total value of what is now purchased by buyers is actually higher.
Some buyers leave the market because they are not willing to buy the good at the higher price.
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