The benefit received by the sellers of a good in a market is measured by:
A)consumer surplus
B)producer surplus
C)the amount buyers pay for the good in excess of the amount the good is actually worth
D)the amount it costs producers to produce the good

Question

Quizplus · Accepted Answer

Producer surplus is the benefit received by the sellers or producers of a good in a market, which is the difference between the price they receive for the good and the minimum price they would be willing to accept to produce and sell that good. Consumer surplus, on the other hand, is the benefit received by the buyers or consumers, which is the difference between the maximum price they are willing to pay for a good and the actual price they pay. Options C and D are incorrect as they do not measure the benefit received by the sellers of a good in a market.

The Benefit Received by the Sellers of a Good in a Market