Graph 7-4
-In Graph 7-4, at the market-clearing equilibrium, total producer surplus is represented by the area:
A)F
B)F + G
C)D + E + F
D)D + E + F + G + H

Question

Graph 7-4 
-In Graph 7-4, at the market-clearing equilibrium, total producer surplus is represented by the area:
A)F 
B)F + G 
C)D + E + F 
D)D + E + F + G + H

Quizplus · Accepted Answer

Total producer surplus is represented by the area above the supply curve and below the market price. At the market-clearing equilibrium, this area is represented by D + E + F. Therefore, the correct choice is C.

Graph 7-4 -In Graph 7-4, at the Market-Clearing Equilibrium, Total Producer Surplus