Using supply and demand curve analysis, the triangular area below the equilibrium price and above the supply curve is:
A) consumer surplus.
B) producer surplus.
C) marginal cost.
D) deadweight loss.

Question

Using supply and demand curve analysis, the triangular area below the equilibrium price and above the supply curve is:
A) ​consumer surplus.
B) ​producer surplus.
C) ​ marginal cost.
D) ​deadweight loss. ​

Quizplus · Accepted Answer

The triangular area below the equilibrium price and above the supply curve represents the producer surplus, which is the difference between what producers are willing to accept for a good versus what they actually receive.

Using Supply and Demand Curve Analysis, the Triangular Area Below