Producer Surplus: Area Above Supply Curve Below Equilibrium Price

Steps:

• Locate equilibrium point where demand intersects supply.
• Identify equilibrium price (horizontal line) and quantity.
• Producer surplus is triangle from origin along supply curve to equilibrium, below price line.
• Match this triangular area to labeled option B.

Why B is correct:

• B captures the gain to producers: total revenue (price × quantity) minus total variable cost (area under supply curve), per economic definition.

Why the others are wrong:

• A: Represents consumer surplus (above price, below demand).
• C: Shows deadweight loss (inefficiency triangle post-intervention).
• D: Indicates total revenue rectangle (price × quantity).

Final answer: B