Total surplus is the area under the demand curve up to the equilibrium quantity, minus the cost to producers.

Name: Total surplus is the area under the demand curve up to the equilibrium quantity, minus the cost to producers.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

Total surplus is the sum of consumer surplus (area under the demand curve above the equilibrium price) and producer surplus (area above the supply curve below the equilibrium price), minus any deadweight loss. This definition includes the cost to producers in the calculation.

Total Surplus Is the Area Under the Demand Curve Up