For a given market demand curve, if the market clearing price increases, then the amount of producer surplus will
A) decrease.
B) increase.
C) become negative.
D) none of the above due to insufficient information.

Question

Quizplus · Accepted Answer

Producer surplus increases when the market clearing price increases because producers are able to sell their goods at a higher price, which increases the difference between the market price and the minimum price at which producers are willing to sell.

For a Given Market Demand Curve, If the Market Clearing