Figure 7-5 -Refer to Figure 7-5. If the Demand Curve Is D

question 118

Multiple Choice

Figure 7-5

-Refer to Figure 7-5. If the demand curve is D and the supply curve shifts from S' to S, what is the change in producer surplus?

• A)Producer surplus increases by $625.
• B)Producer surplus increases by $1,875.
• C)Producer surplus decreases by $625.
• D)Producer surplus decreases by $1,875.