Along a given supply curve, a decrease in price will cause producer surplus to:
A)increase.
B)decrease.
C)stay the same.
D)We cannot determine what producer surplus will do without information about the demand curve.

Question

Quizplus · Accepted Answer

A decrease in price along a given supply curve will reduce producer surplus because producers receive less revenue for the same quantity of goods sold.

Along a Given Supply Curve, a Decrease in Price Will