Price

$($Dollars per unit$)$

Quantity Demanded

$($Units$)$

Quantity Supplied

$($Units$)$

$12\mathrm{.}00$

$0$

$36$

$10\mathrm{.}00$

$3$

$30$

$8\mathrm{.}00$

$6$

$24$

$6\mathrm{.}00$

$9$

$18$

$4\mathrm{.}00$

$12$

$12$

$2\mathrm{.}00$

$15$

$6$

$0\mathrm{.}00$

$18$

$0$

$$A graph of price versus quantity shows two parallel demand curves and two parallel supply curves. From left to right they are D and D prime, and S prime and S$.$ Curve S is a straight line ascending from the origin through points $(50,100)$ and $(75,150).$ Curve S prime is a straight line ascending from $(0,100)$ through points $(25,150),$ and $(50,200).$ Curve D is a straight line descending from $(0,200),$ to $(100,0).$ Curve D prime is a straight line descending from $(0,300)$ to $(150,0).$ Curve D prime intersects Curve S prime at point. $(50,200).$ Curve D prime intersects Curve S at point $(75,150).$ Curve S intersects Curve D at point $(50,100).$ Curve D intersects Curve S prime at point $(25,150).$

Refer to Figure $7-5.$ If the supply curve is S and the demand curve shifts from D to D$\text{'},$ what is the change in producer surplus?

Producer surplus increases by $$3,125$

Producer surplus increases by $$5,625$

Producer surplus decreases by $$3,125$

Producer surplus decreases by $$5,625$

$$