-The above figure shows the domestic market for tomatoes. Suppose this market is isolated from global competition and there is a support price set at $16. In this figure, what area equals the producer surplus?

Question

Quizplus · Accepted Answer

The producer surplus is the area above the supply curve and below the price level. With a support price at $16, the producer surplus is the area between the supply curve and the $16 price level, which is area B + area C + area D + area F.

-The Above Figure Shows the Domestic Market for Tomatoes