Answer
Producer surplus increases as a result of the new demand for bread. Price of the bread has to increase to support the new quantity demanded, and the market for flour would also have a consumer surplus to the same degree as flour is a factor of production for bread.
Work Step by Step
Price has to increase to meet the new demand for French Bread. The increase in demand would shift the supply curve up and to the right and equilibrium price would increase, which allows for more producer surplus as price is driven up.
