Assume there are three hardware stores in the market for hammers and that all three markets produce a single,standard model hammer.House Depot is an enormous mass producer of hammers and can offer a hammer for sale for a minimum of $7.Lace Hardware is a franchise and can offer the hammer for sale for a minimum of $10.Bob's Hardware store is a family owned and operated,independent hardware store and can offer hammers at a minimum price of $13.
Given the scenario described,if the market price of hammers increased from $8 to $11:
A)total producer surplus would increase to $5.
B)total producer surplus would decrease to $1.
C)total producer surplus would increase to $17.
D)total producer surplus would decrease to $7.

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The Answer of Assume there are three hardware stores in the market for hammers and that all three markets produce a single,standard model hammer.House Depot is an enormous mass producer of hammers and can offer a hammer for sale for a minimum of $7.Lace Hardware is a franchise and can offer the hammer for sale for a minimum of $10.Bob's Hardware store is a family owned and operated,independent hardware store and can offer hammers at a minimum price of $13.
Given the scenario described,if the market price of hammers increased from $8 to $11:
A)total producer surplus would increase to $5.
B)total producer surplus would decrease to $1.
C)total producer surplus would increase to $17.
D)total producer surplus would decrease to $7.

Assume There Are Three Hardware Stores in the Market for Hammers