P P^ = 6 A Select one: B C Q₁ = 10 S According to the graph shown, if the market price decreases (all else staying the same): a. producer surplus would increase. b. producer surplus would decrease. c. total surplus would increase. d. quantity would increase. D

Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter3: Demand, Supply, And The Market Proces
Section: Chapter Questions
Problem 6CQ
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P
P^ = 6
A
Select one:
B
C
Q₁ = 10
S
According to the graph shown, if the market price decreases (all else staying the same):
a. producer surplus would increase.
b. producer surplus would decrease.
c. total surplus would increase.
d. quantity would increase.
D
Transcribed Image Text:P P^ = 6 A Select one: B C Q₁ = 10 S According to the graph shown, if the market price decreases (all else staying the same): a. producer surplus would increase. b. producer surplus would decrease. c. total surplus would increase. d. quantity would increase. D
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