If the demand for French bread rises the producer surplus in the market for French bread would increase.
If the demand for French bread rises the producer surplus in the market for flour would increase.
If the demand for French bread rises, there would be a rightward shift of the demand curve, this would lead to an increase in the equilibrium price and quantity of French bread.
Producer surplus is the excess of the price of a good over the least price a seller would be willing to sell his product. When the price of French bread rises, the producer surplus of the market for French bread would increase.
As a result of the increase in the price of French bread, there would be an increase in the supply of bread. This would lead to an increase in the demand for flour. This is because flour is an ingredient used in making bread. As a result of the increase in the demand for flour, there would be an increase in the price of flour. This would lead to a rise in the producer surplus in the market of flour.
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