-In the above figure,if the market quantity is restricted to 500,000 and the price is allowed to rise to set the quantity demanded equal to the quantity supplied,then the producer surplus is equal to
A) area D + area F.
B) area C + area E.
C) area A + area B + area C.
D) area A + area B.
E) area B + area D + area F.

Question

-In the above figure,if the market quantity is restricted to 500,000 and the price is allowed to rise to set the quantity demanded equal to the quantity supplied,then the producer surplus is equal to
A) area D + area F. 
B) area C + area E. 
C) area A + area B + area C. 
D) area A + area B. 
E) area B + area D + area F.

Quizplus · Accepted Answer

Producer surplus is the area above the supply curve and below the price level, which in this case is area B + area D + area F.

-In the Above Figure,if the Market Quantity Is Restricted to 500,000