Total surplus
A) can be used to measure a market's efficiency.
B) is the sum of consumer and producer surplus.
C) is the to value to buyers minus the cost to sellers.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

All three statements are correct. Total surplus is a measure of a market's efficiency, which is calculated as the sum of consumer and producer surplus. Consumer surplus is the difference between the maximum price a consumer is willing to pay and the actual price paid, while producer surplus is the difference between the minimum price a producer is willing to accept and the actual price received. Total surplus is the net benefit or gain to society, which is measured as the total value to buyers minus the cost to sellers.

Total Surplus