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Increase in the average Consumer Surplus

The average prices for many goods tend to drop when Wal-Mart opens a store in the new market area. Such price cuts are most probable to yield rises in the average: (1) Economic gains of local restaurants. (2) Accounting Gains of local stores operated by the Sears, K-Mart, and the Gap. (3) Consumer surpluses of lots of people who customarily shop in the region. (4) Price elasticity of market demands for goods Wal-Mart sells. (5) Producer surpluses benefited from by the relatively smaller retail establishments in the region.

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