Why can a supply curve be used to measure producer surplus
A)It reflects the actions of sellers.
B)It reflects quantity supplied.
C)It reflects sellers' costs.
D)It reflects the amount that will be purchased by consumers in the market.

Question

Quizplus · Accepted Answer

The supply curve reflects the costs of sellers in producing and supplying a certain quantity of a product. Therefore, the area above the supply curve and below the equilibrium price represents the producer surplus - the amount that producers receive above their costs.

Why Can a Supply Curve Be Used to Measure Producer