Question

Producer surplus rev: 05_10_2018 Multiple Choice is the difference between the maximum price consumers are willing to pay for a product and the lower equilibrium price. rises as equilibrium price falls. is the difference between the maximum price consumers are willing to pay for a product and the minimum price producers are willing to accept. is the difference between the minimum price producers are willing to accept for a product and the higher equilibrium price.

Answer 1

Answer:

D) Is the difference between minimum price producers are willing to accept ...... higher the equilibrium price.

Explanation:

Producer Surplus is the difference between - minimum price producers are willing to accept for a product, & the market price. Graphically it is the  (triangular) area above the supply curve, & below the market price.

Higher the market price, higher is the consumer surplus.