The difference between the price at which a seller is willing and able to sell a given good and the actual price received for the good is
A)A price floor
B)A price ceiling
C)A consumer surplus
D)A producer surplus

Question

Quizplus · Accepted Answer

The difference between the price at which a seller is willing and able to sell a given good and the actual price received for the good is producer surplus. This represents the additional profit that a producer earns above and beyond the cost of production. A price floor is a government-imposed minimum price that is set above the equilibrium price, while a price ceiling is a government-imposed maximum price that is set below the equilibrium price. Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good or service and the actual price they pay.

The Difference Between the Price at Which a Seller Is