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 $15 to $11:

A. total producer surplus would fall by $4.
B. total producer surplus falls by $8.
C. House Depot's producer surplus falls by $4.
D. producer surplus for each producer falls by $4.


Answer: C

Economics

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