Graphically,producer surplus is the area under the
A) demand curve and above the supply curve, up to the relevant quantity.
B) price and above the demand curve, up to the relevant quantity.
C) price and above the supply curve, up to the relevant quantity.
D) price and above the quantity axis, up to the relevant quantity.
E) demand curve and above the price, up to the relevant quantity.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price a producer receives and the minimum price they would have been willing to accept. Graphically, this is represented by the area above the supply curve and below the market price (which intersects with the demand curve) up to the relevant quantity. Option C correctly indicates that the producer surplus is above the supply curve and up to the relevant quantity.

Graphically,producer Surplus Is the Area Under the