If demand increases, the price of a product, as well as producer surplus:
A)increases
B)decreases
C)remains the same
D)may increase, decrease or remain the same

Question

Quizplus · Accepted Answer

When demand increases, the price of a product typically increases. This results in an increase in producer surplus, which is the difference between the price at which producers are willing to sell a product and the market price they actually receive. Therefore, as demand increases, both price and producer surplus increase.

If Demand Increases, the Price of a Product, as Well