Consumer surplus tends to be higher when demand is

Assessment: JAMB UTME - Economics - 2010 Subject: Economics

Question 1 Report

Consumer surplus tends to be higher when demand is
Answer Details
Consumer surplus tends to be higher when demand is elastic. This is because when demand is elastic, consumers are more sensitive to changes in price and are willing to buy more when prices are low. As a result, they can obtain a larger quantity of goods or services for a given price, which increases their consumer surplus. In contrast, when demand is inelastic, consumers are less sensitive to changes in price, and as a result, their consumer surplus tends to be lower.

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