Final answer:
With the increase in demand causing both price and quantity to rise, and hence total revenue increasing from $3.5 million to $6.3 million, the producer surplus will also increase. The exact new value for the producer surplus cannot be determined without additional information on cost and quantity sold.
Step-by-step explanation:
The producer surplus is defined as the amount that a seller is paid for a good minus the seller's actual cost. When the demand curve shifts to the right due to an increase in demand, the equilibrium price generally increases, leading to higher consumer spending. If producers' total revenue increases significantly with the demand shift, as the question suggests from $3.5 million to $6.3 million, this implies a higher producer surplus because producers are receiving more revenue for their goods than before the demand increase.
To calculate the new producer surplus, we need to understand that the producer surplus is represented graphically as the area above the supply curve and below the market price up to the amount sold. Before the demand shift, the producer surplus is the area below the initial equilibrium price of $7,000 and above the supply curve. After the demand shift, with increased revenue (taking into account changes in price and quantity sold), the area representing the producer surplus has become larger. However, we need more information to calculate the exact new value of the producer surplus.