Problem
When the demand for toilet paper increases, the equilibrium quantity sold increases. Consumers are buying more, and producers are producing more.
a. How do producers receive the signal that they need to increase production to meet the new demand?
b. Does the increased production reflect an increase in supply, or an increase in the quantity supplied? Explain your answer, referring to (a).
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.