Figure 7-23
-Refer to Figure 7-23.At equilibrium,producer surplus is represented by the area
A)F.
B)F+G.
C)D+H+F.
D)D+H+F+G+I.

Question

Figure 7-23 
-Refer to Figure 7-23.At equilibrium,producer surplus is represented by the area
A)F. 
B)F+G. 
C)D+H+F. 
D)D+H+F+G+I.

Quizplus · Accepted Answer

Producer surplus is the difference between the price producers receive for their output and the minimum price they are willing to accept. At equilibrium, the price is P*, and the quantity supplied is Q*. The producer surplus is the area above the supply curve and below the price line, which is D+H+F.

Figure 7-23 -Refer to Figure 7-23.At Equilibrium,producer Surplus Is Represented by the Represented