If the supply curve of ice cream is upward-sloping and demand for it decreases,there will be _____ in producer surplus.
A)an increase
B)a decrease
C)no change
D)It's impossible to tell what will happen to producer surplus.

Question

Quizplus · Accepted Answer

If demand for ice cream decreases, the market equilibrium price will decrease. As a result, the quantity suppliers are willing to supply will decrease along the upward-sloping supply curve, leading to a decrease in producer surplus.

If the Supply Curve of Ice Cream Is Upward-Sloping and Demand