Use the following to answer question:
-(Figure: Producer Surplus II) Look at the figure Producer Surplus II.If the price rises from P₁ to P₂,producer surplus increases by the area:

Question

Use the following to answer question:

-(Figure: Producer Surplus II) Look at the figure Producer Surplus II.If the price rises from P₁ to P₂,producer surplus increases by the area:

Quizplus · Accepted Answer

Producer surplus increases by the area between the new and old prices, which is represented by the trapezoid formed by the lines P₂, P₁, and KM.

Use the Following to Answer Question