If price increases and the quantity purchased increases, we know that

Increased productivity in the agricultural sector is not always a benefit to farmers because it is accompanied by

A) lower prices and if demand is inelastic, lower prices mean lower revenues. B) higher prices and if demand is elastic, higher prices mean lower revenues. C) lower prices and if demand is elastic, lower prices mean lower revenues. D) higher prices and if demand is inelastic, higher prices mean lower revenues.

Refer to the graph shown. Initially, the market is in equilibrium where the demand curve intersects S0. In the initial equilibrium, producer surplus is equal to:

A. 1,800. B. 4,500. C. 6,000. D. 900.