Suppose a Consumer Is Willing to Pay a Maximum of $45

question 3

Multiple Choice

Suppose a consumer is willing to pay a maximum of $45 for a brand of perfume whose price increases from $37 to $41.What will be the impact of this price rise on the consumer surplus?

• A)Consumer surplus will increase by $8.
• B)Consumer surplus will decline by $8.
• C)Consumer surplus will increase by $4.
• D)Consumer surplus will decline by $4.

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