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2. Is it ever possible that an increase in the price of a good for which...

2. Is it ever possible that an increase in the price of a good for which a person is a net seller can make him worse off? Use a diagram to illustrate your answer.
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Answer #1

It can be mentioned that, is actually possible if the price of the good increased , then next seller will be worse off And this happens in the case of relatively elastic goods and this is because of the fact that in the case of elastic goods, the price increases the quantity demanded decreases more proportionatelysuch that the total revenue ultimately decreases and with this the net seller is worse off and this is shown in the graph below where decrease in the price is actually making the revenue reduce.

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