All else equal, the higher the actual price producers receive for their product, the greater the producer surplus.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the actual price received by producers and the minimum price they are willing to accept for producing a given amount of a product. As the actual price producers receive increases, their producer surplus also increases, assuming all other factors remain constant.

All Else Equal, the Higher the Actual Price Producers Receive