what-happens-to-producer-surplus-when-the-market-price-rises-above-the-willingne

Question

What happens to producer surplus when the market price rises above the willingness to sell for most producers?

Accepted Answer

Producer surplus increases as more producers are willing to sell at the higher price.

Answer

Producer surplus remains constant as the supply curve does not change.

Answer

Producer surplus decreases as fewer producers enter the market.

Answer

Producer surplus is unaffected by changes in market price.