When a market is in equilibrium, the total amount of consumer surplus must be _______ the total amount of producer surplus.
A) equal to
B) less than
C) larger than
D) None of the above answers is correct.

Question

Quizplus · Accepted Answer

In market equilibrium, there's no rule or economic principle that dictates the total amount of consumer surplus must be equal to, less than, or larger than the total amount of producer surplus. The relationship between consumer surplus and producer surplus varies depending on the market structure, the nature of the goods or services, and the elasticity of supply and demand.

When a Market Is in Equilibrium, the Total Amount of Consumer