Along a given supply curve,an increase in the price of a good will:
A)increase producer surplus.
B)decrease producer surplus.
C)increase consumer surplus.
D)decrease producer surplus and increase consumer surplus.

Question

Quizplus · Accepted Answer

An increase in the price of a good along a given supply curve will increase the producer surplus. This is because the producer can now charge a higher price for their product, resulting in increased profits. As the price of the good goes up, the quantity supplied will also increase, leading to higher levels of producer surplus.

Along a Given Supply Curve,an Increase in the Price of a Good