Maximum total surplus in the market for chocolate occurs when:
A)total net gain to producers is minimized.
B)all consumers who value chocolate can buy chocolate.
C)all producers can sell their chocolate.
D)the market is in equilibrium.

Question

Quizplus · Accepted Answer

At equilibrium, the quantity of chocolate demanded by consumers is equal to the quantity supplied by producers. This means that all consumers who value chocolate at or above the market price can buy it, and all producers who are willing and able to sell chocolate can do so. Any quantity below or above equilibrium would result in a deadweight loss and a decrease in total surplus. Therefore, maximum total surplus in the market for chocolate occurs when the market is in equilibrium.

Maximum Total Surplus in the Market for Chocolate Occurs When