Figure 7-4

-Refer to Figure 7-4.When the price is at P 2,what is producer surplus
A)A
B)A + C
C)A + B + C
D)C + D

Name: Figure 7-4 -Refer to Figure 7-4.When the price is at P 2,what is producer surplus A)A B)A + C C)A + B + C D)C + D
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Question

Figure 7-4
 
-Refer to Figure 7-4.When the price is at P 2,what is producer surplus
A)A 
B)A + C 
C)A + B + C 
D)C + 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. At P2, the minimum price producers are willing to accept is P1. Therefore, producer surplus is A + B + C.

Figure 7-4 -Refer to Figure 7-4.When the Price Is at P 2,what