Suppose there is an increase in supply that reduces market price. Consumer surplus increases because (1) consumer surplus received by existing buyers increases and (2) new buyers enter the market. a. TRUE b. FALSE

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Business

Arianna Irwin

11 September, 13:22

Suppose there is an increase in supply that reduces market price. Consumer surplus increases because (1) consumer surplus received by existing buyers increases and (2) new buyers enter the market. a. TRUE b. FALSE

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Helen Craig · Answer 1

True

Explanation:

If there is an increase in supply that reduces market price. Consumer surplus increases because both of the following reasons

(1) consumer surplus received by existing buyers increases and

(2) new buyers enter the market.

a. TRUE