The following diagram represents the market for paperback books.Which area represents producer surplus?

Question

Quizplus · Accepted Answer

Producer surplus is the area between the equilibrium price and the supply curve. In this diagram, area B represents the producer surplus as it is above the supply curve and below the equilibrium price. Areas A and C represent consumer surplus and deadweight loss, respectively. Area D is not relevant in this context as it is below the equilibrium price and represents a situation where the quantity supplied is greater than the quantity demanded.

The Following Diagram Represents the Market for Paperback Books