Figure 7-9 -Refer to Figure 7-9.If the Demand Curve Is D and Curve

question 205

Multiple Choice

Figure 7-9

-Refer to Figure 7-9.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.