Figure 9-8

-Refer to Figure 9-8.Producer surplus in this market after trade is

Name: Figure 9-8 -Refer to Figure 9-8.Producer surplus in this market after trade is
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Question

Figure 9-8
 
-Refer to Figure 9-8.Producer surplus in this market after trade is

Quizplus · Accepted Answer

Producer surplus is the area above the supply curve and below the price that producers receive. After trade, the price is P2 and the area of producer surplus is B+C+D (shaded in blue in the graph). Therefore, the correct answer is C.

Figure 9-8 -Refer to Figure 9-8.Producer Surplus in This Market After Trade