Use the following to answer questions 11-12:
Figure 3.4
-(Figure 3.4) The outward shift of the supply curve will cause producer surplus to increase from area _____ to area _____.
A) B; E + F
B) A + B; D + F
C) A + B + C; D + F
D) C; D

Question

Use the following to answer questions 11-12:
Figure 3.4 
-(Figure 3.4) The outward shift of the supply curve will cause producer surplus to increase from area _____ to area _____.
A) B; E + F 
B) A + B; D + F 
C) A + B + C; D + F 
D) C; D

Quizplus · Accepted Answer

When supply curve shifts outward, the equilibrium price increases from P1 to P2 which results in an increase in producer surplus from area B (previous equilibrium producer surplus) to area E+F (new equilibrium producer surplus).

Use the Following to Answer Questions 11-12