Figure 8.6.3
-Refer to Figure 8.6.3 above. Producer surplus in the figure equals the area:

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the amount a producer is willing to sell a product for and the actual amount received from the buyer. In this figure, producer surplus is the area below the market price (equilibrium price) and above the supply curve. This represents the amount that producers are willing to sell the product for (as shown by the supply curve) but are actually receiving more (as represented by the market price) in the market, thus resulting in surplus.

Figure 8.6.3 -Refer to Figure 8.6.3 Above. Producer Surplus in the Figure