Asked by Cardian Williams on Apr 25, 2024
Verified
Producer surplus describes a situation in which there is excess quantity demanded.
Producer Surplus
The gap between what sellers are prepared to accept for a product or service and the real amount they end up getting.
Excess Quantity
The situation where the supply of a product exceeds the demand for it at a specific price point, leading to a surplus.
- Gain an understanding of what constitutes producer surplus and the process involved in its calculation.
Verified Answer
RZ
Robby ZahradnikApr 30, 2024
Final Answer :
False
Explanation :
Producer surplus describes the difference between what producers are willing to accept for a good or service versus what they actually receive, not excess quantity demanded.
Learning Objectives
- Gain an understanding of what constitutes producer surplus and the process involved in its calculation.