Use the following to answer question:
-(Figure: Producer Surplus III)Look at the figure Producer Surplus III.If the price of the good is $2,producer surplus will equal:
A)$20.
B)$40.
C)$60.
D)$80.

Question

Use the following to answer question: 
-(Figure: Producer Surplus III)Look at the figure Producer Surplus III.If the price of the good is $2,producer surplus will equal:
A)$20. 
B)$40. 
C)$60. 
D)$80.

Quizplus · Accepted Answer

Producer surplus is the difference between the price a producer is willing to sell a good for and the price they actually receive. In this case, the producer is willing to sell the good for $2, but the market price is $4. Therefore, the producer surplus is $2.

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