Figure 7-11 -Refer to Figure 7-11.If the Supply Curve Is S and Is

Multiple Choice

Figure 7-11
-Refer to Figure 7-11.If the supply curve is S and the demand curve shifts from D to D',what is the change in producer surplus?

A) Producer surplus increases by $3,125.
B) Producer surplus increases by $5,625.
C) Producer surplus decreases by $3,125.
D) Producer surplus decreases by $5,625.