Assuming that the supply curve of cupcakes is upward-sloping and demand for cupcakes decreases,there is a(n)_____ in _____ surplus.
A)increase;producer
B)increase;consumer
C)increase;total
D)decrease;producer

Question

Quizplus · Accepted Answer

When demand for cupcakes decreases, the price that consumers are willing to pay also decreases. This leads to a lower equilibrium price and quantity, reducing the area representing producer surplus because producers are receiving less for their goods than before.

Assuming That the Supply Curve of Cupcakes Is Upward-Sloping and Demand