If there is an increase in supply,assuming a positively sloped supply curve and a negatively sloped demand curve,total surplus:
A)will increase.
B)will decrease.
C)will remain the same.
D)may change,but we can't tell how.

Question

Quizplus · Accepted Answer

An increase in supply will cause a downward pressure on prices, which will increase the quantity demanded. This results in a larger consumer surplus due to the lower prices they pay. Producers will still receive some benefit from the increased quantity supplied because they can still sell more units at a lower price. Therefore, an increase in supply will increase total surplus.

If There Is an Increase in Supply,assuming a Positively Sloped