-In the figure above, suppose the market is at equilibrium. Then area B is the
A) amount of the consumer surplus.
B) marginal cost.
C) amount of the producer surplus.
D) deadweight loss.
E) marginal benefit.

Question

-In the figure above, suppose the market is at equilibrium. Then area B is the
A) amount of the consumer surplus. 
B) marginal cost. 
C) amount of the producer surplus. 
D) deadweight loss. 
E) marginal benefit.

Quizplus · Accepted Answer

In a market equilibrium diagram, area B, typically located above the supply curve and below the equilibrium price, represents the producer surplus. This area measures the difference between what producers are willing to accept for a good or service (as indicated by the supply curve) and what they actually receive (the equilibrium price).

-In the Figure Above, Suppose the Market Is at Equilibrium