Which reason do prices increases?
money circulation is main reason for the inflation. when money supply is increases then investments are also going to increases, employment rises, output rises, consumption increases, demand is also rises for the goods when demand rises, prices of goods is rises finally its leads to INFLATION.. From, Madhu..
Consumer surplus is the hypothetical monetary gain of consumers because they are able to buy a product for a price lower than they are originally willing to pay. When demand increases, supply (which is inversely proportional to demand) decreases, and as a result, prices increase. When prices increase, consumer surplus decreases.