If the price of a good rises along an upward-sloping supply curve,then producer surplus:
A)will increase.
B)will decrease.
C)will remain the same.
D)may change,but we can't tell how.

Question

Quizplus · Accepted Answer

When the price of a good rises along an upward-sloping supply curve, it means that producers are able to sell their goods at a higher price, which increases their revenue. As a result, producer surplus – which is the difference between the market price and the cost of production – will increase.

If the Price of a Good Rises Along an Upward-Sloping