If the price of a product increases: Multiple Choice the price increase has no effect on...

If the price of a product increases:

Multiple Choice

the price increase has no effect on the producer surplus.
the consumer surplus will not change.
the consumer surplus will increase.
the producer surplus will increase.

Solutions

Expert Solution

Answer= The producer surplus increases

reason- The producer surplus is the difference between the price level and the minimum price producer is Willing to get.

Producer surplus is the area between the price level and the supply curve.

So the price rises, producer surplus rises.

Rahul Sunny answered 1 year ago

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