When you try to lower your price below equilibrium, it will result in a consumer surplus. Why does this occur?

A. Lower price causes lower demand.

B. Lower price creates a product surplus.

C. Greater demand results in buyer remorse.

D. Lower price creates a higher demand.

Question

Business

Fellow

22 March, 17:06

When you try to lower your price below equilibrium, it will result in a consumer surplus. Why does this occur?

A. Lower price causes lower demand.

B. Lower price creates a product surplus.

C. Greater demand results in buyer remorse.

D. Lower price creates a higher demand.

+1

Answers (1)

Know the Answer?

Vivian Salazar · Answer 1

D. Lower price creates a higher demand.

Explanation:

Consumer surplus is the difference between the prices costumers are willing to pay for a product with what the product was placed to be bought at.

When prices are lowered below equilibrium, it leads to more people being able to buy the product than previously were, because it becomes more profitable for the costumer, thereby increasing the demand for the product.

Consumer surplus is good as it allows for the product to be bought and gives more utility to the costumers.

When you try to lower your price below equilibrium, it will result in a consumer surplus. Why does this occur?A. Lower price causes lower demand.B. Lower price creates a product surplus.C. Greater demand results in buyer remorse.D. Lower price creates a higher demand.

When you try to lower your price below equilibrium, it will result in a consumer surplus. Why does this occur?

A. Lower price causes lower demand.

B. Lower price creates a product surplus.

C. Greater demand results in buyer remorse.

D. Lower price creates a higher demand.