What happens to consumer surplus in the cell phone market if cell phones are normal goods and buyers of cell phones experience an increase in income? a. Consumer surplus decreases. b. Consumer surplus remains unchanged. c. Consumer surplus increases. d. Consumer surplus may increase, decrease, or remain unchanged.

D

Explanation:

Normal goods are goods that are goods whose demand increases when income increases and falls when income falls

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay – price of the good

If consumers income increases, their demand for cell phone would increase. This would lead to an increase in price of the good.

Also, willingness to pay would ncrease as a result of income increase

If increase in willingess to pay exceeds increase in price, consumer surplus increases, if not it reduces. If the increase is the same, it remains the same

match the scenarios with terms related to financial aid.

pell grant

student loan

merit-based scholarship

richard is one of the leading college basketball players in the state of florida. he also maintains a good academic record. looking at his talent and potential, furman university offers to bear the expenses for his college education.

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anita wants to pursue a certificate program in sports nutrition. to pay for the course, she borrows money by filing the fafsa.

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nathan comes from a low-income household. he wants to pursue an undergraduate degree in marketing. he receives financial aid covering 50 percent of his college expenses. nathan does not have to pay back this amount.

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