Multiple Choice
Assume there are three hardware stores,each willing to sell one standard model hammer in a given time period.House Depot can offer their hammer for a minimum of $7.Lace Hardware can offer the hammer for a minimum of $10.Bob's Hardware store can offer the hammer at a minimum price of $13. Given the scenario described,if the market price of hammers decreased from $13 to $11:
A) total producer surplus would decrease from $9 to $5.
B) total producer surplus would increase from $5 to $9.
C) total producer surplus would decrease from $30 to $17.
D) total producer surplus would remain unchanged.
Correct Answer:

Verified
Correct Answer:
Verified
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