-Refer to the diagram above.If the current price is $16.30 per unit,producer surplus equals
A)$1,400.
B)$600.
C)$423.50.
D)$1,171.50.
E)$1,350.

Name: -Refer to the diagram above.If the current price is $16.30 per unit,producer surplus equals A)$1,400. B)$600. C)$423.50. D)$1,171.50. E)$1,350.
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Question

-Refer to the diagram above.If the current price is $16.30 per unit,producer surplus equals
A)$1,400. 
B)$600. 
C)$423.50. 
D)$1,171.50. 
E)$1,350.

Quizplus · Accepted Answer

Producer surplus is calculated as the area above the supply curve and below the price level. Given the price of $16.30, the producer surplus is $1,171.50.

-Refer to the Diagram Above