Along a given supply curve,an increase in the price of a good will:

A) increase producer surplus.
B) decrease producer surplus.
C) increase consumer surplus.
D) decrease producer surplus and increase consumer surplus.

Producer Surplus

The difference between the amount producers are willing to sell their goods for and the actual amount they receive due to higher market prices.

Consumer Surplus

The gap highlighting the difference between the sum consumers intend to pay and what they actually fork out for a good or service.

Supply Curve

A graphical representation showing the relationship between the price of a product and the quantity of the product that suppliers are willing to sell.