When a new medical report extols the health advantages of apples,assuming an upward-sloping supply curve,producer surplus in the apple market:
A) will increase.
B) will decrease.
C) will remain the same.
D) may change,but we can't tell how.

Question

Quizplus · Accepted Answer

With the new medical report extolling the health advantages of apples, the demand for apples will increase. This will result in an increase in the equilibrium price of apples, leading to an increase in the producer surplus.

When a New Medical Report Extols the Health Advantages of Apples,assuming