Question 10
[Maximum number: 1]
The diagram shows the demand for and supply of a product.
Which area shows producer surplus?
A
Option A shown in diagram
B
Option B shown in diagram
C
Option C shown in diagram
D
Option D shown in diagram
CAIE A-Level Economics 2.5.2 Producer surplus
Practise recognising producer surplus as the area between market price and supply, including after demand or supply shifts.
How this is tested
- identify producer surplus above the supply curve and below market price
- calculate producer surplus from labelled demand and supply diagrams
- interpret new producer surplus after demand or supply shifts