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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Lily Murillo

Business

8 January, 20:46

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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Fiesta · 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