To calculate producer surplus:
A) integrate the area under the demand curve and above the equilibrium price.
B) integrate the area under the demand curve and above the supply curve.
C) integrate the area under the equilibrium price and above the supply curve.
D) integrate the area under the supply curve.

Question

Quizplus · Accepted Answer

Producer surplus is calculated by integrating the area above the supply curve and below the equilibrium price, representing the difference between what producers are willing to accept for a good versus what they actually receive.

To Calculate Producer Surplus