Which of the following statements is always true?
A)An increase in price will lead to an increase in producer surplus along a supply curve.
B)An increase in price will lead to an increase in consumer surplus along a demand curve.
C)A price ceiling will lead to an increase in consumer surplus.
D)A price floor will lead to an increase in consumer surplus.

Question

Which of the following statements is always true?
A)​An increase in price will lead to an increase in producer surplus along a supply curve.
B)​An increase in price will lead to an increase in consumer surplus along a demand curve.
C)​A price ceiling will lead to an increase in consumer surplus.
D)​A price floor will lead to an increase in consumer surplus.

Quizplus · Accepted Answer

An increase in price generally leads to an increase in producer surplus along a supply curve because producers are able to sell their goods at a higher price, which typically increases their profits or surplus from those sales. Choices B, C, and D are not always true because the effects on consumer surplus depend on various factors such as the elasticity of demand and supply, and the specific conditions under which price ceilings or floors are implemented.

Which of the Following Statements Is Always True