If the market price decreases from \$10 to \$6, how does this affect the producer surplus on a supply curve graph?

• A. Producer surplus remains unchanged as the supply curve does not shift.
• B. Producer surplus decreases as the area between the new price and the supply curve shrinks.
• C. Producer surplus increases as the area between the new price and the supply curve expands.
• D. Producer surplus is eliminated as the price falls below the willingness to sell.

Answer: (B)