The impact of increasing supply on consumer surplus .

Explanation:

Figure -1 illustrates the producer surplus, consumer surplus and the impact of increased supply.

In figure -1, the horizontal axis measures the quantity and the vertical axis measures the price. S curve denotes the supply curve and D curve indicates the demand curve. Equilibrium occurs at the point where, the demand curve intersects with the supply curve. The consumer surplus is the area below the demand curve and above the supply line. Thus, the consumer surplus is the area of ‘AEB’...