Graph 8-2 This graph shows supply and demand in a free market.
-According to Graph 8-2, total economic surplus would be represented by area:
A)A + B
B)B + C
C)C + D
D)A + D

Question

Graph 8-2  This graph shows supply and demand in a free market.
-According to Graph 8-2, total economic surplus would be represented by area:
A)A + B 
B)B + C 
C)C + D 
D)A + D

Quizplus · Accepted Answer

Total economic surplus is the sum of consumer surplus and producer surplus, which is represented by the area above the supply curve and below the demand curve up to the equilibrium point. In this case, it includes areas B (consumer surplus) and C (producer surplus).

Graph 8-2 This Graph Shows Supply and Demand in a Free