Suppose the demand for nachos increases.What will happen to producer surplus in the market for nachos
A)It increases.
B)It decreases.
C)It is unaffected by this change in market forces.
D)It decreases briefly then increases.

Question

Quizplus · Accepted Answer

When the demand for nachos increases, the market price for nachos increases as well. This market price increase leads to an increase in the producer surplus, as producers are able to sell their nachos for a higher price than before.

Suppose the Demand for Nachos Increases