Producer surplus is the difference between
A) the maximum prices consumers are willing to pay for a product and the lower equilibrium price.
B) the quantity supplied and quantity demanded at an above equilibrium price.
C) the minimum prices producers are willing to accept for a product and the higher equilibrium price.
D) the maximum prices consumers are willing to pay for a product and the minimum prices producers are willing to accept.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the minimum price that producers are willing to accept for a product and the actual market price. This occurs because producers are willing to accept a lower price than the market price in order to sell more units of their product at a profit. Therefore, option C is the correct choice.

Producer Surplus Is the Difference Between