Producer surplus is depicted by the area
A) above market price and below the supply curve.
B) between the supply curve and the demand curve.
C) below market price and above the supply curve.
D) above market price and below the demand curve.
E) above the demand curve and below the supply curve.

Question

Quizplus · Accepted Answer

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

Producer Surplus Is Depicted by the Area