A supply curve can be used to measure producer surplus because it reflects
A)the actions of sellers.
B)quantity supplied.
C)sellers' costs.
D)the amount that will be purchased by consumers in the market.

Question

Quizplus · Accepted Answer

The supply curve reflects sellers' costs, which is the minimum price they are willing to accept for a given quantity. Producer surplus is the difference between what producers are willing to accept and what they actually receive, which can be measured using the supply curve.

A Supply Curve Can Be Used to Measure Producer Surplus