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27 August, 10:08

Suppose there is a product that is being sold in a perfectly competitive market. If the market price of the product falls , producer surplus will ▼ decrease increase since this change results in a lower price, which means there is ▼ less more area between the supply curve and the market price for the good.

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  1. 27 August, 12:18
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    Decrease; Less

    Explanation:

    The producer surplus is the difference between the minimum price that a producer is willing to accept for a product and the price he actually receives.

    When the market price of a product falls, the producer surplus will decrease as well.

    The lower market price implies that there will be less area between the supply curve and the market price of the product.
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