A. If the price of ribs goes from $8 to $5, what happens to the producer surplus? Calculate the possible changes and show the area used to measure the producer surplus reduction in the figure. B. A new thing happened. The cost of producing ribs dropped dramatically. Draw a supply and demand graph showing the effect of falling production costs on the price and quantity of ribs. And shows the changes in the consumer and producer surplus areas in the chart. 20 Price 18+ 16 14 12 10 00 659 D Supply Demand 10 20 30 40 50 60 70 80 Quantity