The area between the market price and the supply curve provides a measure of:
A)consumer surplus.
B)producer surplus.
C)consumer surplus plus producer surplus.
D)marginal utility.
E)the deadweight loss arising from free trade.

Question

Quizplus · Accepted Answer

The area between the market price and the supply curve represents producer surplus, which is the difference between what producers are willing to accept for a good and what they actually receive.

The Area Between the Market Price and the Supply Curve