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.

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Definitions:

Cost Of Goods Sold

The total direct costs attributable to the production of the goods sold in a company, including materials and labor.

Physical Units

A measure of quantity in production or inventory, typically referred to when counting tangible products or items.

Finished Goods Inventory

A category of inventory that includes items that are ready for sale, having completed all stages of production.

Production Activities

Production activities refer to the processes involved in creating goods or services, including manufacturing, assembly, and quality control.