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

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15-06-2018
Business

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

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MrsTriplet MrsTriplet · Answer 1 · 2018-06-24T18:51:30+02:00

MrsTriplet MrsTriplet

24-06-2018

Ceteris paribus refers to nothing else changing in the situation that is being described. If the supply of a product increase the firm will produce more if there is a demand of that item, if there is a producer surplus the firm will slow down production and depending on the shelf-life, discount items to keep them moving.

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