Figure 7-9 -Refer to Figure 7-9.If the Supply Curve Is S and Curve

question 264

Multiple Choice

Figure 7-9

-Refer to Figure 7-9.If the supply curve is S and the demand curve shifts from D to D',what is the change in producer surplus?

• A) Producer surplus increases by $3,125.
• B) Producer surplus increases by $5,625.
• C) Producer surplus decreases by $3,125.
• D) Producer surplus decreases by $5,625.