When prices rise above equilibrium: A. producer surplus falls and consumer surplus rises. B. producer surplus...

When prices rise above equilibrium:

A. producer surplus falls and consumer surplus rises.

B. producer surplus falls and it is uncertain what happens to consumer surplus.

C. consumer surplus falls and it is uncertain what happens to producer surplus.

D. producer surplus falls and consumer surplus falls.

Say which answer choice it is and why.

Expert Solution

Rahul Sunny answered 6 months ago

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When prices rise above equilibrium: A. producer surplus falls and consumer surplus rises. B. producer surplus...

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