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.

Question

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.

Quizplus · Accepted Answer

Producer surplus is the area between the market price and the supply curve, representing the difference between what producers are willing to accept for a good or service versus what they actually receive.

The Area Between the Market Price and the Supply Curve