Which best describes producer surplus? O a. The profits made by a firm O b. The difference between the willingness to sell for an item and the price he/she will receive for the good it sells O c. The price producers would like to receive to accept to sell a unit of the good O d. The cost of providing a unit We can measure total consumer surplus for good X as: O a. the area bounded by the demand curve for X and the two axes. O b. the area above the demand curve for X and below the price of X. O c. the sum of the individual consumer surpluses for all buyers of X O d. the area above the supply curve for X.

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
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Chapter6: Supply, Demand And Government Policies
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Which best describes producer surplus?
O a. The profits made by a firm
O b. The difference between the willingness to sell for an item and the price he/she will receive for the good it sells
O c. The price producers would like to receive to accept to sell a unit of the good
O d. The cost of providing a unit
We can measure total consumer surplus for good X as:
O a. the area bounded by the demand curve for X and the two axes.
O b. the area above the demand curve for X and below the price of X.
O c. the sum of the individual consumer surpluses for all buyers of X
O d. the area above the supply curve for X.
Transcribed Image Text:Which best describes producer surplus? O a. The profits made by a firm O b. The difference between the willingness to sell for an item and the price he/she will receive for the good it sells O c. The price producers would like to receive to accept to sell a unit of the good O d. The cost of providing a unit We can measure total consumer surplus for good X as: O a. the area bounded by the demand curve for X and the two axes. O b. the area above the demand curve for X and below the price of X. O c. the sum of the individual consumer surpluses for all buyers of X O d. the area above the supply curve for X.
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