Question
Study the supply curve given below and answer the following question.
At what price is the producer surplus equal to $2?
At what price is the producer surplus equal to $2?
Answer: Option C
:
C
Producer surplus, Π is the area above the supply curve and below the price line.
It can be seen that at a price of $3,
Π=12×(3−1)×2=$2
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:
C
Producer surplus, Π is the area above the supply curve and below the price line.
It can be seen that at a price of $3,
Π=12×(3−1)×2=$2
Was this answer helpful ?
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