Question

The demand curve for cookies is downward sloping. When the price of cookies is $2, the quantity demanded is 100. If the price rises to $3, what happens to consumer surplus?

a. It falls by less than $100.

b. It falls by more than $100

c. It rises by less than $100.

d. It rises by more than $100

Answer 1

positive but less than the marginal seller's cost.

a) It falls by less than $100.

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