-Refer to the diagram above.Which of the following will result in the largest increase in producer surplus?
A) A shift left of the supply curve.
B) An increase in the cost of production.
C) A decrease in labour productivity.
D) An increase in the wage rate.
E) A shift right of the demand curve.

Question

-Refer to the diagram above.Which of the following will result in the largest increase in producer surplus?
A) A shift left of the supply curve. 
B) An increase in the cost of production. 
C) A decrease in labour productivity. 
D) An increase in the wage rate. 
E) A shift right of the demand curve.

Quizplus · Accepted Answer

A shift right of the demand curve increases the price producers receive, leading to a larger producer surplus.

-Refer to the Diagram Above