Limited access

Upgrade to access all content for this subject

Due to shockingly lax safety standards, a whole range of fireworks factories have burned down. How will this affect producer and consumer surplus in the market for fireworks?

A

Producer and consumer surplus will both rise

B

Producer and consumer surplus will both shrink

C

Producer surplus will increase, and consumer surplus will shrink or stay the same

D

Producer surplus will decrease, and consumer surplus will increase or stay the same

E

There is not enough information to tell

Select an assignment template