Total surplus in a market is the number of extra consumers and producers that are not needed for the market to come to an equilibrium price and quantity.

Question

Quizplus · Accepted Answer

Total surplus in a market represents the difference between the maximum amount consumers are willing to pay for a good or service and the minimum amount producers are willing to accept for that same good or service. It is not related to the number of extra consumers and producers in the market. Therefore, the statement is false.

Total Surplus in a Market Is the Number of Extra