Dawn's bridal boutique is having a sale on evening dresses. The increase in consumer surplus comes from the benefit of the lower prices to

Answer 1

the customers who purchase the evening dresses. Consumer surplus is the difference between the price that the consumers are willing to pay for a good or service and the actual price they pay.

In this case, the lower prices during the sale provide a greater benefit to the customers. They can now purchase the evening dresses at a lower price than they were initially willing to pay. This results in an increase in consumer surplus as the customers gain additional value or benefit from the lower prices.

The increase in consumer surplus can have various effects. It may attract more customers to Dawn's bridal boutique, encourage existing customers to make additional purchases, or even allow some customers to purchase higher-quality dresses or accessories with the money they save from the sale. Overall, the benefit of lower prices leads to a greater consumer surplus and a more positive shopping experience for the customers.