When the Supply of a Product Rises, Ceteris Paribus, What

question 61

Multiple Choice

When the supply of a product rises, ceteris paribus, what happens to firms' willingness-to-sell and to the amount of producer surplus?

• A) They both decrease.
• B) They both increase.
• C) The willingness to produce rises and producer surplus falls.
• D) The willingness to produce falls and producer surplus rises.

---

Definitions:

Prices

The amount of money required to purchase a good or service, indicating the value placed on it by the market.

Preferences

In economics, this refers to the subjective tastes and likes of individuals, which influence their choices among various goods and services.

Prices

The financial amount expected, required, or supplied as remuneration for an item.

Income

Money received on a regular basis from work, property, investments, business ventures, and other sources, used to fund consumption and savings.