All else held constant,a decrease in the price of a good would necessarily:
A) increase social well-being.
B) decrease producer surplus.
C) decrease consumer surplus.
D) increase demand for the good.
E) increase producer surplus.

Question

Quizplus · Accepted Answer

A decrease in the price of a good typically reduces producer surplus because producers receive less revenue for each unit sold.

All Else Held Constant,a Decrease in the Price of a Good