Producer surplus is equal to the:
A) area under the demand curve and above the supply curve.
B) area above the supply curve and below the equilibrium price.
C) area under the demand curve.
D) area under the supply curve.
E) area above the demand curve.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the amount producers are willing to accept for a good or service versus what they actually receive, represented graphically as the area above the supply curve and below the equilibrium price.

Producer Surplus Is Equal to The