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What Is Producer Surplus?

Site: Saylor Academy
Course: ECON101: Principles of Microeconomics
Book: What Is Producer Surplus?
Printed by: Guest user
Date: Thursday, 3 April 2025, 9:26 PM

Description

Watch this video, which explains consumer surplus using a graph to help you grasp both the concept and the calculation. Complete the practice questions to make sure you understand the calculation.

Table of contents

Practice Questions

 

  1. All costs included, it costs your local restaurant $12 to serve you your favorite meal. You pay $21 for it. What is the producer surplus? *
    1. $9
    2. –$9
    3. $33
    4. –$33

  2. What should we expect to happen if the producer surplus of a trade is negative? *
    1. The producer gains no value from the trade.
    2. The producer loses value from the trade.
    3. The producer's gain from trade is the absolute value of the producer's surplus.
    4. The trade does not happen.

Answers

  1. a
  2. d