Which of the following is not true concerning producer surplus?
A) It is qraphically the area under the supply curve and above the market price.
B) It exists in equilibrium.
C) A leftward shift of the supply curve will decrease producer surplus.
D) A rightward shift of the supply curve will increase producer surplus.

Question

Which of the following is not true concerning producer surplus?
A) ​It is qraphically the area under the supply curve and above the market price.
B) ​It exists in equilibrium.
C) ​A leftward shift of the supply curve will decrease producer surplus.
D) ​A rightward shift of the supply curve will increase producer surplus.​

Quizplus · Accepted Answer

The producer surplus is graphically the area above the supply curve and below the market price, not under the supply curve.

Which of the Following Is Not True Concerning Producer Surplus