b. Producer surplus is shown graphically as the area above the supply curve and above the market price. under the demand curve and below the market price. above the supply curve and below the market price. under the demand curve and above the market price.
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Step 1: Producer surplus is the difference between the price at which producers are willing to sell a good and the actual price they receive. Show more…
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On a graph, consumer surplus is represented by the area between the demand and supply curves.
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