Producer surplus is defined as the:difference between a price floor and the market price. gap between the supply curve and the market price. gap between the demand curve and the market price. difference between a price ceiling and the market price.

Question

Darby

Business

6 November, 10:05

Producer surplus is defined as the:difference between a price floor and the market price. gap between the supply curve and the market price. gap between the demand curve and the market price. difference between a price ceiling and the market price.

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Answers (1)

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Reid Bass · Answer 1

Gap between the supply curve and the market price.

Explanation:

Producers surplus refers to the surplus that a producer of a commodity can obtain. The producers surplus is the difference between the producer's willingness to accept the price and the actual price they have received.

Producers surplus = Actual market price - Willingness to accept the price

Graphically, it is the area between the upper portion of supply curve and the market price.