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

Question

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

Quizplus · Accepted Answer

Producer surplus is the difference between the price at which producers are willing and able to sell a product and the actual market price they receive. In this case, after trade, producers receive a price equal to P2, which is the market equilibrium price. Their willingness to sell is represented by the supply curve, and their actual revenue is represented by the area below the market price and above the supply curve. Therefore, their total surplus is the sum of areas B, C, and D. Thus, the correct answer is C.

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