_____ determines the amount of economic surplus; ______ determines whether buyers or sellers get the surplus.
A)Price; quantity
B)Quantity; price
C)Marginal benefit; marginal cost
D)Marginal cost; marginal benefit

Question

Quizplus · Accepted Answer

The amount of economic surplus is determined by the quantity, which is the difference between the total amount that buyers are willing to pay for a good and the total amount that sellers are willing to accept. The price, on the other hand, determines who gets the surplus - if the price is set higher, then sellers will get more of the surplus, while if the price is set lower, buyers will get more of the surplus. Therefore, the correct answer is B.

_____ Determines the Amount of Economic Surplus; ______ Determines Whether

_ Determines the Amount of Economic Surplus; __ Determines Whether