The area on a market graph that lies below the price and above the supply curve is equal to:
A)producer surplus.
B)consumer surplus.
C)economic equity.
D)economic efficiency.

Question

Quizplus · Accepted Answer

Producer surplus is the area below the price and above the supply curve on a market graph. It represents the difference between what producers are willing to accept for a good or service versus what they actually receive.

The Area on a Market Graph That Lies Below the Price