The lower the price, the lower the producer surplus, all else equal.

Name: The lower the price, the lower the producer surplus, all else equal.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Producer surplus is the difference between what producers are willing to accept for a good versus what they actually receive. Lower prices mean producers receive less for their goods, thus reducing their surplus, assuming all other factors remain constant.

The Lower the Price, the Lower the Producer Surplus, All