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:

Surface Subsides

The phenomenon of ground levels sinking or settling, which can result from natural processes or human activities such as mining or excessive groundwater extraction.

Profit

The financial gain achieved when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Harvest

The process or period of gathering in crops.

Life Tenant

An individual who has the right to use and benefit from property during their lifetime, but cannot sell or transfer the property.