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i dont know how to solve this problem can somebody please explain , i would actually like to learn. the image is below?
If the price falls from P2 to P1, consumer surplus increases by what area?
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- ♠RoFL Man♣Lv 56 years agoFavorite Answer
Taking D(x) or AD as the Demand curve,and market Prices as OP1 and OP2,
Area[A.P2.B] is the consumer's surplus when price is P2.
If Prices fall from P2 to P1,
Then,
Area of the Triangle[A.P1.F] is the new consumer's surplus.
You can find the Amount of Increase by finding the differences in Areas:
Area(AP1F) - Area(AP2B)
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