Assume the Market Is in Equilibrium in the Graph Shown

question 52

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.

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