Which of the following events would decrease producer surplus?
A) Sellers' costs stay the same and the price of the good increases.
B) Sellers' costs increase and the price of the good stays the same.
C) Sellers' costs decrease and the price of the good increases.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

Producer surplus decreases when sellers' costs increase while the price of the good remains the same, as it reduces the difference between the price received and the cost of production.

Which of the Following Events Would Decrease Producer Surplus