Assume the market is in equilibrium in the graph shown at demand D and supply S1. If the supply curve shifts to S2, and a new equilibrium is reached, which of the following is true?





A. Consumer surplus increases, and total surplus increases.

B. Consumer surplus decreases, and total surplus increases.

C. Consumer surplus increases, and total surplus decreases.

D. Consumer surplus decreases, and total surplus decreases.


A. Consumer surplus increases, and total surplus increases.

Economics

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