Assuming that the supply curve of cupcakes is upward sloping and the demand for cupcakes decreases,there is a(n)_____ in _____ surplus.
A) increase;producer
B) increase;consumer
C) increase;total
D) decrease;producer

Question

Quizplus · Accepted Answer

When demand decreases, the equilibrium price and quantity both fall, leading to a decrease in producer surplus as producers receive less revenue for fewer cupcakes sold.

Assuming That the Supply Curve of Cupcakes Is Upward Sloping