Assume the market depicted in the graph is in equilibrium at demand (D) and supply (S₁). If the supply curve shifts to S₂, and a new equilibrium is reached, which of the following is true? A) Consumer surplus increases, but producer surplus decreases. B) Consumer surplus decreases, but producer surplus increases. C) Both consumer and producer surplus increase. D) Both consumer and producer surplus decrease.

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The Answer of Assume the market depicted in the graph is in equilibrium at demand (D) and supply (S₁). If the supply curve shifts to S₂, and a new equilibrium is reached, which of the following is true? A) Consumer surplus increases, but producer surplus decreases. B) Consumer surplus decreases, but producer surplus increases. C) Both consumer and producer surplus increase. D) Both consumer and producer surplus decrease.

Assume the Market Depicted in the Graph Is in Equilibrium