Discover a world of knowledge at Westonci.ca, where experts and enthusiasts come together to answer your questions. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.
Sagot :
Producer surplus is shown graphically as the area under the demand curve and above the supply curve.
What is producer surplus?
Producer surplus is the difference between the least price a producer is willing to sell his good or service and the price of the good. The higher the price of the good, the higher producer surplus is.
Producer surplus = price of the good - least price the seller is willing to sell his good or service.
For example, the least price a seller is willing to sell a good is $1000. The price of the good is $2000. The producer surplus is $1000 (2000 - 1000).
The demand curve shows the relationship between price and quantity demanded. The supply curve shows the relationship between price and quantity supplied. The producer surplus is the area above the supply curve but the area below the demand curve.
To know more about producer surplus, please check: https://brainly.com/question/27204566
#SPJ1
Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.
