Producer surplus is the area
A) below the supply curve and above the price.
B) below the demand curve and above the supply curve.
C) below the demand curve and above the price.
D) above the demand curve and below the price.
E) above the supply curve and below the price.

Question

Quizplus · Accepted Answer

Producer surplus is the area above the supply curve and below the price, representing the difference between what producers are willing to accept and what they actually receive.

Producer Surplus Is the Area