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A farmers market is an age-old form of farm direct marketing dating back to the early history of. our country. Markets bring farmers to urban and rural settings where consumers shop for fresh, locally grown foods. The direct-to-consumer connection builds relationships between.
Recall that the consumer surplus is calculating the area between the demand curve and the price line for the quantity of goods sold. Assuming that there is no shift in demand, an increase in price will therefore lead to a reduction in consumer surplus, while a decrease in price will lead to an increase in consumer surplus. Consumer Surplus: An increase in the price will reduce consumer surplus, while a decrease in the price will increase consumer surplus. Below are two scenarios that illustrate how changes in price can affect consumersâ surplus.