Total surplus is:
A)the difference between price and the cost to the seller.
B)the sum of consumer and producer surplus.
C)equal to the area below the demand curve.
D)always more for consumers than producers.

Question

Quizplus · Accepted Answer

Total surplus is the sum of consumer and producer surplus, representing the overall benefit that both parties receive from participating in a market transaction. Option A only refers to the seller's benefit, while option C only describes the demand curve. Option D is not always true as it depends on the specific market and equilibrium price.

Total Surplus Is