Asked by Aaron Portillo on May 01, 2024
Verified
If there is an increase in supply,assuming a positively sloped supply curve and a negatively sloped demand curve,total surplus:
A) will increase.
B) will decrease.
C) will remain the same.
D) may change,but we can't tell how.
Positively Sloped
Characterizes a line or curve on a graph that moves upward as one moves from left to right, indicating a direct relationship between two variables.
Negatively Sloped
Describes a downward trend in a graph, indicating an inverse relationship between two variables, such as price and demand.
Total Surplus
The sum of consumer surplus and producer surplus in a market, representing the total benefit to society from the production and consumption of goods or services.
- Analyze the impact of supply and demand shifts on total surplus.
Verified Answer
Learning Objectives
- Analyze the impact of supply and demand shifts on total surplus.
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