A decrease in supply will always
A)increase producer surplus.
B)decrease consumer surplus.
C)decrease producer surplus.
D)increase consumer surplus.

Name: A decrease in supply will always A)increase producer surplus. B)decrease consumer surplus. C)decrease producer surplus. D)increase consumer surplus.
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Question

Quizplus · Accepted Answer

A decrease in supply typically leads to higher prices, which benefits producers but harms consumers by making goods more expensive and less accessible, thus decreasing consumer surplus.

A Decrease in Supply Will Always