Which of the following does not affect producer surplus in the short run?
A)Supply shifts to the left.
B)A price ceiling below equilibrium is imposed by government.
C)Wages paid to labor increase.
D)Demand shifts to the right.
E)Fixed costs for the typical firm increase.

Question

Quizplus · Accepted Answer

Producer surplus in the short run is primarily affected by changes in price, quantity supplied, and quantity demanded. Fixed costs, being costs that do not change with the level of output in the short run, do not directly affect producer surplus in this timeframe. Changes in fixed costs impact long-term decisions rather than the short-run dynamics of supply and demand that determine producer surplus.

Which of the Following Does Not Affect Producer Surplus in the Short