Which of the following events would increase producer surplus?
A) Sellers' costs stay the same and the price of the good increases.
B) Sellers' costs increase and the price of the good stays the same.
C) Sellers' costs increase and the price of the good decreases.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

Producer surplus increases when the price of the good increases while sellers' costs remain the same, as it results in a higher difference between the price received and the cost of production.

Which of the Following Events Would Increase Producer Surplus