Suppose a Firm Has Market Power and Faces a Downward

Suppose a firm has market power and faces a downward sloping demand curve for its product, and its marginal cost curve is upward sloping. If the firm reduces its price, then:

A) producer surplus increases due to new buyers, but the producer surplus from existing customers declines due to the lower price.
B) the change in producer surplus is transferred to consumers.
C) the increase in consumer surplus is only due to the increase in quantity demanded.
D) the sum of producer and consumer surplus remains the same, but surplus value is transferred from the producer to consumers.