Along a given downward-sloping demand curve, an increase in the price of a good will: have no effect on consumer surplus. increase consumer surplus. decrease producer surplus. decrease consumer surplus.
The answer to this question is the last item in the choices which is "decrease consumer surplus". Thus, we have it like along a given downward-sloping demand curve, an increase in the price of a good will also result to decrease consumer surplus. Also, when decrease consumer surplus is happening it will effect also to increase producer surplus.
