-The figure above shows the market for milk. If the population increases, then the efficient quantity of milk ________ and the producer surplus ________.
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases

Question

-The figure above shows the market for milk. If the population increases, then the efficient quantity of milk ________ and the producer surplus ________.
A) increases; increases 
B) increases; decreases 
C) decreases; increases 
D) decreases; decreases

Quizplus · Accepted Answer

An increase in population leads to an increase in demand for milk, which raises the efficient quantity of milk. As demand increases, the price and quantity sold in the market rise, leading to an increase in producer surplus.

-The Figure Above Shows the Market for Milk