Briefly explain whether you agree with the followingstatement:

"If consumer surplus

LOADING...

in a marketincreases, producer surplus

LOADING...

mustdecrease."

A.

The statement is incorrect. Consumer surplus(and producersurplus) could increase by decreasing economic surplus.

B.

The statement is incorrect. Consumer surplus(and producersurplus) could increase if the government intervenes in a market by imposing apriceceiling.

C.

The statement is incorrect. Consumer surplus(and producersurplus) could increase by decreasing economic efficiency.

D.

The statement is incorrect. Consumer surplus(and producersurplus) could increase by decreasing deadweight loss.

E.

The statement is correct.