If the demand for leather decreases,producer surplus in the leather market
A)increases.
B)decreases.
C)remains the same.
D)may increase,decrease,or remain the same.

Question

Quizplus · Accepted Answer

If the demand for leather decreases, the equilibrium price will decrease. As a result, the producer surplus will decrease as the producers will receive lower prices for their leather products. Therefore, the correct choice is B.

If the Demand for Leather Decreases,producer Surplus in the Leather