Graphically,producer surplus is the ________.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price at which a producer is willing to sell a good and the actual price received. Graphically, it can be represented as the area between the supply curve and the equilibrium price line because this represents the amount that producers receive above their minimum price. The area between the demand curve and the equilibrium price line represents consumer surplus, which is not the same as producer surplus. The area below the supply curve represents the cost of production, not producer surplus. The area above the market price of a good represents deadweight loss.

Graphically,producer Surplus Is the ________