Explain how elasticity of demand curve affects consumer surplus when p – InterviewSolution

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1.	Explain how elasticity of demand curve affects consumer surplus when price increases?
Answer» Consumer surplus for a PRODUCT is zero when the DEMAND for the product is perfectly elastic. ... With inelastic demand. When price increases by 20% and demand DECREASES by, consumer surplus is high because the demand is not AFFECTED by a change in the price, and consumers are willing to PAY more for a product.

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