Producer surplus
A) increases if market price rises and the supply curve does not shift.
B) decreases if market price rises and the supply curve does not shift.
C) is equal to the maximum price consumers are willing to pay.
D) is the same as the marginal cost.
E) always must equal consumer surplus.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the market price and the marginal cost of production. If the market price rises and the supply curve does not shift, the producer is able to earn a higher price per unit without incurring any additional costs. This increases producer surplus.

Producer Surplus