Final answer:
A growth in supply chain surplus enlarges the economic 'total pie,' benefiting suppliers and consumers by improving overall wealth. Enhanced technology, transportation, and labor policies play key roles in this increase. When the demand exceeds supply, increasing prices encourage more providers to enter the market, boosting supply chain surplus.
Step-by-step explanation:
A growth in supply chain surplus increases the total value created in the system, allowing everyone to potentially benefit—from producers to consumers. This surplus results from enhanced efficiencies, technological advancements, and improved labor policies. It drives economic growth by enabling more goods and services to be produced and consumed. The surplus is shared among all stakeholders in the supply chain, leading to a wealthier society overall.
Technological improvements and transportation advancements streamline the supply chain, increasing surplus. Policies safeguarding supply chains during emergencies prevent disruptions that diminish surplus. Furthermore, when labor rights are protected and labor policies are improved, workers are better compensated, and productivity often increases, which also boosts surplus. The increase in supplier income enables them to demand goods, creating a beneficial cycle of supply and demand.