Along a given upward-sloping supply curve,a decrease in price will cause producer surplus to:
A)increase.
B)decrease.
C)stay the same.
D)We cannot determine what producer surplus will do without information about the demand curve.

Question

Quizplus · Accepted Answer

Producer surplus decreases when the price decreases along an upward-sloping supply curve because producers receive less for each unit sold, reducing the area between the price and the supply curve, which represents producer surplus.

Along a Given Upward-Sloping Supply Curve,a Decrease in Price Will