This is the benefit which a supplier gets upon selling a commodity. It is calculated as the difference in the amount that a supplier can accept to sell his commodity and the amount which the commodity is actually sold in the in the market.
Question 1 b
The increase in cost of commodity to sellers is seen leads to increase in price of a commodity in the market. If it is not possible to increase the price of a commodity supply curve shifts to the left indicating a decrease in quantity supplied (Depken,26).
Question 1 c
Producer surplus increases as price of a commodity