Equilibrium quantity increase

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Picture Assume the market is in equilibrium in the graph shown at demand D and supply S1. If the supply curve shifts to S2, and a new equilibrium is reached. Equilibrium quantity increase from 4 to 4.5 units.

Which of the following is true?

-Producer surplus increases by $8.50.

-Producer surplus decreases by $8.50.

-Producer surplus increases by $7.50.

-Producer surplus decreases by $16.

Reference no: EM13733405

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