Figure 8-1

-Refer to Figure 8-1.When the market is in equilibrium,producer surplus is represented by area
A)a.
B)B.
C)C.
D)D.

Question

Figure 8-1
 
-Refer to Figure 8-1.When the market is in equilibrium,producer surplus is represented by area
A)a. 
B)B. 
C)C. 
D)D.

Quizplus · Accepted Answer

Producer surplus is the difference between the price producers receive for their goods and the minimum price they are willing to accept. In Figure 8-1, the equilibrium price is P* and the equilibrium quantity is Q*. The producer surplus is represented by the area above the supply curve and below the equilibrium price, which is area C.

Figure 8-1 -Refer to Figure 8-1.When the Market Is in Equilibrium,producer Surplus