Producer surplus is measured by:
A) The area of the triangle above the supply curve and below the equilibrium price.
B) The area of the triangle below the demand curve and above the equilibrium price.
C) The area of the triangle between the demand and supply curves to the left of the market equilibrium that correspond to the zone where buyers and sellers can engage in profitable traders.
D) The area of the triangle between the demand and supply curves to the right of the market equilibrium that correspond to the zone where buyers and sellers can engage in profitable traders.

Question

Quizplus · Accepted Answer

Producer surplus is measured by the area of the triangle above the supply curve and below the equilibrium price. This area represents the difference between what producers are willing to accept for a good or service versus what they actually receive.

Producer Surplus Is Measured By