Author Question: Assuming peaches are a normal good and consumer incomes rise, producer surplus in the peach market: ... (Read 542 times)

james9437 · **on:** Jun 30, 2018

Assuming peaches are a normal good and consumer incomes rise, producer surplus in the peach market:
a. increases. b. decreases.
c. remains unchanged. d. equals the deadweight loss increase.

Question 2

Which of the following is not true concerning producer surplus?
a. It is qraphically the area under the supply curve and above the market price.
b. It exists in equilibrium.
c. A leftward shift of the supply curve will decrease producer surplus.
d. A rightward shift of the supply curve will increase producer surplus.