Under a fixed exchange rate system, if the dollar price of Mexican pesos is above its equilibrium level, the peso is referred to as overvalued and the dollar is necessarily undervalued

Producer surplus

A) increases if market price rises and the supply curve does not shift. B) decreases if market price rises and the supply curve does not shift. C) is equal to the maximum price consumers are willing to pay. D) is the same as the marginal cost. E) always must equal consumer surplus.

If a nonrenewable natural resource's price is expected to increase at a rate faster than the interest rate, then the supply today will

A) the supply today will increase. B) the supply today will decrease. C) the demand today will decrease. D) the price today will fall.