-The figure above shows the market for umbrellas in Sunville. When the market for umbrellas in Sunville is in equilibrium, what is the producer surplus?

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price producers receive and the minimum price they are willing to accept. In this case, the equilibrium price is $10 and the minimum price producers are willing to accept is $6. Therefore, the producer surplus is $10 - $6 = $4.

-The Figure Above Shows the Market for Umbrellas in Sunville