In 2012 a severe drought raised the price of corn. For a farmer in Canada who harvested a normal crop because the farm was not affected directly by the drought, the increase in the price of corn

A) increases the farmer's producer surplus.
B) decreases the farmer's producer surplus.
C) does not affect the producer surplus because this change is a movement along the farmer's supply curve and not a shift of the farmer's supply curve.
D) increases producer surplus only if the farmer's supply is completely inelastic.


A

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