Answer:
it decreases
Explanation:
As a result of the decrease in demand for tacos, the price of tacos would fall, all other things remaining equal.
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product. As a result of the fall in price, the producer surplus would decrease.
Assume that price of tacos before the fall in demand is $10
the least price, the seller is willing to sell tacos is $3.
Producer surplus = $10 - $3 = $7
After the fall in demand, price falls to $8
producer surplus becomes = $8 - $3 = $5
We can see that producer surplus fell
