Figure 7-11. On the graph below, Q represents the quantity of the good and P represents the good's price.

-Refer to Figure 7-11.At the equilibrium,producer surplus is measured by the area
A)ACG.
B)AFG.
C)DBG.
D)CFG.

Question

Figure 7-11. On the graph below, Q represents the quantity of the good and P represents the good's price.
 
-Refer to Figure 7-11.At the equilibrium,producer surplus is measured by the area
A)ACG. 
B)AFG. 
C)DBG. 
D)CFG.

Quizplus · Accepted Answer

The producer surplus is the area above the supply curve and below the equilibrium price (P*). At equilibrium, the producer surplus is measured by the area CFG.