Asked by Annie Vanden Brink on Sep 23, 2024
Verified
The difference between the minimum price the producer is willing to accept and the price the producer actually receives for a product is referred to as:
A) market surplus.
B) market shortage.
C) consumer surplus.
D) producer surplus.
Producer Surplus
The difference between the amount producers are willing to supply a good for and the actual amount they receive (or market price).
Minimum Price
The lowest possible price at which a product or service can be sold, often regulated by governments to protect producers or consumers.
- Gain an insight into the idea of market surplus, which includes the surplus for consumers and producers.
Verified Answer
MO
Mayowa Oseni1 day ago
Final Answer :
D
Explanation :
Producer surplus is the difference between the minimum amount that a producer is willing to accept for a product or service and the actual market price they receive. It represents the producer's benefit from participating in a market transaction.
Learning Objectives
- Gain an insight into the idea of market surplus, which includes the surplus for consumers and producers.