Figure 7-10
-Refer to Figure 7-10.Which area represents producer surplus when the price is P1?
A)BCG
B)ACH
C)ABGD
D)DGH

Name: Figure 7-10 -Refer to Figure 7-10.Which area represents producer surplus when the price is P1? A)BCG B)ACH C)ABGD D)DGH
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Question

Figure 7-10 
-Refer to Figure 7-10.Which area represents producer surplus when the price is P1?
A)BCG 
B)ACH 
C)ABGD 
D)DGH

Quizplus · Accepted Answer

Producer surplus is the area above the supply curve and below the price level, up to the quantity sold. At price P1, this area is BCG.

Figure 7-10 -Refer to Figure 7-10.Which Area Represents Producer Surplus When the Surplus