If the demand for a good or service decreases,producer surplus
A) increases.
B) decreases.
C) remains the same.
D) may increase,decrease,or remain the same.

Question

Quizplus · Accepted Answer

If the demand for a good or service decreases, the producer needs to lower their prices in order to sell the product. This leads to a decrease in producer surplus as they are receiving less revenue from sales.

If the Demand for a Good or Service Decreases,producer Surplus