Producer surplus is equal to the area
A)under the demand curve and above the supply curve.
B)above the supply curve and below the price line.
C)under the supply curve.
D)under the demand curve and above the price line.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the amount producers are willing to accept for a good or service and the amount they actually receive, represented by the area above the supply curve and below the price line.

Producer Surplus Is Equal to the Area