Producer surplus is the area
A)under the supply curve.
B)between the supply and demand curves.
C)below the price and above the supply curve.
D)under the demand curve and above the price.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price a producer receives for a good and the minimum price they are willing to accept to supply that good. This area is below the price and above the supply curve because producers are willing to supply up to the point where the cost of producing the good equals the price they receive, and any price above that is considered surplus.

Producer Surplus Is the Area