If the technology of producing peanuts improves,total surplus in the peanut butter market:
A)will increase.
B)will decrease.
C)will not change.
D)may change,but we cannot determine the change without more information.

Question

Quizplus · Accepted Answer

If the technology of producing peanuts improves, then the cost of producing peanut butter will decrease, leading to a decrease in price for consumers. This will result in an increase in consumer surplus. Additionally, the increase in efficiency and supply will lead to an increase in producer surplus. Therefore, total surplus in the peanut butter market will increase.

If the Technology of Producing Peanuts Improves,total Surplus in the Peanut