Figure 7-10
-Refer to Figure 7-10.Which area represents producer surplus when the price is P2?
A)BCG
B)ACH
C)ABGD
D)AHGB

Name: Figure 7-10 -Refer to Figure 7-10.Which area represents producer surplus when the price is P2? A)BCG B)ACH C)ABGD D)AHGB
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Question

Figure 7-10 
-Refer to Figure 7-10.Which area represents producer surplus when the price is P2?
A)BCG 
B)ACH 
C)ABGD 
D)AHGB

Quizplus · Accepted Answer

Producer surplus is the area above the supply curve and below the market price. When the price is P2, the area representing producer surplus is the triangle ACH. Therefore, the correct choice is B.

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