Along a given supply curve, a decrease in the price of a good will:
A)increase producer surplus.
B)decrease producer surplus.
C)have no effect on producer surplus.
D) It's impossible to tell what will happen to producer surplus.

Question

Quizplus · Accepted Answer

A decrease in the price of a good along a given supply curve will decrease producer surplus because producers receive less revenue for the same quantity of goods sold.

Along a Given Supply Curve, a Decrease in the Price