Suppose That Last Year the Equilibrium Price and the Quantity

Multiple Choice

Suppose that last year the equilibrium price and the quantity of good X were $10 and 5 million pounds, respectively. Because of strong demand this year, the equilibrium price and the quantity of good X are $12 and 7 million pounds, respectively. Assuming that the supply curve of good X is linear, producer surplus:

A) decreased from $8 million to $6 million.
B) increased from $12.5 million to $24.5 million.
C) increased from $3 million to $7 million.
D) increased from $4.2 million to $5.6 million.