Economic surplus is:
A)the difference between the marginal benefit to the buyer and the marginal cost to the seller.
B)the sum of consumer and producer surplus.
C)equal to the area above the supply curve.
D)always less for consumers than producers.

Question

Quizplus · Accepted Answer

Economic surplus is the difference between the willingness to pay of buyers and the cost of production for sellers. Consumer surplus is the difference between the price a consumer is willing to pay for a good and the actual price they pay, while producer surplus is the difference between the actual price received by a producer and the minimum price they are willing to accept. The sum of consumer and producer surplus is the economic surplus. Therefore, choice (B) is correct.

Economic Surplus Is