Producer surplus is the:
A) amount by which the quantity supplied of a good exceeds the quantity demanded of a good.
B) value of the sum of producers' willingness to sell a good plus the price of the good.
C) measure of how much producers value a good.
D) value of the difference between the actual selling price of a good and the price producers are willing to sell it for on the supply curve.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the actual selling price of a good and the price producers are willing to sell it for on the supply curve. This represents the extra profit that producers receive due to the market price being higher than their minimum acceptable price to sell the good. Options A, B, and C do not accurately describe producer surplus.

Producer Surplus Is The