The total amount of producer surplus in a market is equal to
A)the difference between quantity supplied and quantity demanded.
B)the area above the market supply curve and below the market price.
C)the area above the market supply curve.
D)the area between the demand curve and the supply curve below the market price.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price sellers receive for their good and the minimum price they would have been willing to accept to produce that good. Therefore, the total amount of producer surplus in a market is equal to the area above the market supply curve and below the market price.

The Total Amount of Producer Surplus in a Market Is