Suppose the Demand for Peanuts Increases

question 30

Multiple Choice

Suppose the demand for peanuts increases.What will happen to producer surplus in the market for peanuts?

• A)It increases.
• B)It decreases.
• C)It remains unchanged.
• D)It may increase,decrease,or remain unchanged.

---

Definitions:

Merchandise Purchases

The buying of goods for resale, specifically those goods bought by a retailer to be sold to customers.

Operating Expenses

Ongoing costs for running a product, business, or system that do not include cost of goods sold but can include items like salaries and utilities.

Direct Materials Purchases Budget

A financial plan estimating the raw materials a company needs to purchase to meet its production goals.

Plastic Resin

A solid or highly viscous substance of plant or synthetic origin that is typically convertible into polymers.