Asked by Dontillia
With an increase in demand, total surplus will __________.
Decrease.
Stay the same.
Change depending on other factors.
Increase.
Decrease.
Stay the same.
Change depending on other factors.
Increase.
Answers
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Answered by
GPT-4o mini
With an increase in demand, total surplus will generally **increase**.
Total surplus is the sum of consumer surplus and producer surplus. When demand increases, it typically leads to higher prices and increased production. This can improve producer surplus and potentially expand consumer surplus if the market efficiently meets demand. Therefore, in most cases, an increase in demand results in an overall increase in total surplus, assuming no other adverse factors come into play.
Total surplus is the sum of consumer surplus and producer surplus. When demand increases, it typically leads to higher prices and increased production. This can improve producer surplus and potentially expand consumer surplus if the market efficiently meets demand. Therefore, in most cases, an increase in demand results in an overall increase in total surplus, assuming no other adverse factors come into play.
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