The sum of the consumer surplus and the producer surplus is
A)A price floor
B)A price ceiling
C)A market failure
D)An economic surplus

Question

Quizplus · Accepted Answer

The sum of the consumer surplus and the producer surplus is the economic surplus, which represents the total benefit to society from a transaction. Therefore, D is the correct answer. A price floor or a price ceiling can result in a loss of economic surplus, and a market failure occurs when the market fails to allocate resources efficiently.

The Sum of the Consumer Surplus and the Producer Surplus