Use the Following to Answer Questions

question 68

Multiple Choice

Use the following to answer questions
Figure: Determining Surplus and Loss
-(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.