Micro 9 - Producer surplus Flashcards
1
Q
Producer surplus definition
A
Difference between what producers are willing to accept and what they recieve
2
Q
How do you show producer surplus on a supply curve?
A
Below the price, above the supply curve
3
Q
On a graph producer surplus is the area
A
Above the supply curve and under the market price
4
Q
On a graph, show the impact on producer surplus of an increase in price
A
5
Q
On a graph, show the impact on producer surplus due to a decrease in price
A
