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Assume the Market Is in Equilibrium in the Graph Shown

Question 121

Multiple Choice

Assume the market is in equilibrium in the graph shown at demand D and supply S1 (and a quantity of 5) . If the supply curve shifts to S2, and a new equilibrium is reached (at a quantity of 7) , which of the following is true? A) Consumer surplus increases by $5. B) Consumer surplus decreases by $5. C) Consumer surplus increases by $9. D) Consumer surplus decreases by $9. Assume the market is in equilibrium in the graph shown at demand D and supply S1 (and a quantity of 5) . If the supply curve shifts to S2, and a new equilibrium is reached (at a quantity of 7) , which of the following is true?


A) Consumer surplus increases by $5.
B) Consumer surplus decreases by $5.
C) Consumer surplus increases by $9.
D) Consumer surplus decreases by $9.

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