Asked by Michael Culham on May 01, 2024

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If the technology of producing peanuts improves,total surplus in the peanut butter market:

A) will increase.
B) will decrease.
C) will not change.
D) may change,but we cannot determine the change without more information.

Total Surplus

The aggregate of consumer surplus plus producer surplus in a marketplace, symbolizing the overall advantages to society.

  • Understand the effects of external variables like technology advancements and income variations on the balance of market forces.
  • Investigate the consequences of supply and demand fluctuations on the total surplus.
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ZK
Zybrea KnightMay 04, 2024
Final Answer :
A
Explanation :
If the technology of producing peanuts improves, then the cost of producing peanut butter will decrease, leading to a decrease in price for consumers. This will result in an increase in consumer surplus. Additionally, the increase in efficiency and supply will lead to an increase in producer surplus. Therefore, total surplus in the peanut butter market will increase.