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

Question

Quizplus · Accepted Answer

Producer surplus is the area above the supply curve and below the price line, representing the difference between what producers are willing to accept and what they actually receive.

Producer Surplus Is Equal to the Area