Along a given upward-sloping supply curve,a decrease in the price of a good will _____ producer surplus.
A)increase
B)decrease
C)have no effect on
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 an upward-sloping supply curve reduces producer surplus because producers receive less for each unit sold, diminishing the area between the supply curve and the market price.

Along a Given Upward-Sloping Supply Curve,a Decrease in the Price