Use the following to answer question(s): Surplus and Supply

-(Exhibit: Surplus and Supply) The difference between the total revenue received by sellers and their total cost is called _______ surplus, and for output level OE is depicted by the area enclosed in _______ .
A) consumer; ABD
B) producer; OBDE
C) net; OADE
D) producer; ABD

Question

Use the following to answer question(s): Surplus and Supply
 
-(Exhibit: Surplus and Supply) The difference between the total revenue received by sellers and their total cost is called _______ surplus, and for output level OE is depicted by the area enclosed in _______ .
A) consumer; ABD 
B) producer; OBDE 
C) net; OADE 
D) producer; ABD

Quizplus · Accepted Answer

The question is asking for the term used to describe the difference between total revenue and total cost, which is producer surplus. The exhibit shows producer surplus as the area enclosed by the demand curve (D) and the supply curve (S) up to the quantity produced at point E, which is depicted as the triangle ABD. Therefore, the correct answer is D, producer, as it correctly identifies the type of surplus and the area it is depicted by in the exhibit.

Use the Following to Answer Question(s): Surplus and Supply