The Market for Plywood Is Characterized by the Following Demand

Multiple Choice

The market for plywood is characterized by the following demand and supply equations: Q^D = 800 - 10P and Q^S = 50P - 1,000, where P is the price per sheet of plywood and Q measures the quantity of plywood. If the government imposes a price ceiling of $25 per sheet of plywood, producer surplus:

A) increases from $3,333 to $4,225.
B) decreases from $5,000 to $1,250.
C) decreases from $1,875 to $1,240.
D) decreases from $2,500 to $625.