(Figure: Determining Surplus and Loss) Consider the Graph

question 274

Multiple Choice

(Figure: Determining Surplus and Loss) Consider the graph. If the price is lowered from $8 to $5, producer surplus

• A) increases by $190 and deadweight loss increases by $30.
• B) increases by $50 and deadweight loss increases by $70.
• C) decreases by $190 and deadweight loss increases by $30.
• D) decreases by $90 and deadweight loss increases by $70.

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