Use the following to answer question:
-(Figure: Producer Surplus)Look at the figure Producer Surplus.When the price rises from $25 to $35,producer surplus _____ for a total producer surplus of _____.
A)increases by $10;$30
B)decreases by $10;$30
C)increases by $30;$60
D)decreases by $35;$100

Question

Use the following to answer question: 
-(Figure: Producer Surplus)Look at the figure Producer Surplus.When the price rises from $25 to $35,producer surplus _____ for a total producer surplus of _____.
A)increases by $10;$30 
B)decreases by $10;$30 
C)increases by $30;$60 
D)decreases by $35;$100

Quizplus · Accepted Answer

Producer surplus increases because the higher price of $35 (up from $25) allows producers to receive more money for each unit sold than before. The total producer surplus at the new price is $60, reflecting the additional area under the new price level and above the supply curve.

Use the Following to Answer Question