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Producer Surplus and Willingness to Sell
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Producer Surplus and Willingness to Sell
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5. Consumer and Producer Surplus; Price Ceilings and Price Floors / Willingness to Sell and Producer Surplus / Problem 7
Problem 7
What happens to producer surplus when the market price rises above the willingness to sell for most producers?
A
Producer surplus increases as more producers are willing to sell at the higher price.
B
Producer surplus remains constant as the supply curve does not change.
C
Producer surplus decreases as fewer producers enter the market.
D
Producer surplus is unaffected by changes in market price.
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