The producer surplus is the area below the demand curve but greater than equilibrium price .
What is the producer surplus?
Producer surplus is the difference between the price a person would take for a certain quantity of a thing and the price they could get for the good if they sold it at market value. The producer benefits from market sales of the item by receiving the difference or excess amount.
Market pricing above the lowest price producers would normally be ready to pay for their commodities result in a producer surplus. The Walras legislation may be relevant here.
The whole amount that a producer makes when they create and sell a certain amount of an item at the going rate is known as the producer surplus.
The entire income from sales of a producer's goods less the marginal cost of production results in producer surplus.
to learn more about producer surplus click:
https://brainly.com/question/22775616
#SPJ4
