The total surplus in a market is represented by the area between the ________.

Question

Quizplus · Accepted Answer

The total surplus in a market is represented by the area between the demand and supply curves and the price axis. This area is known as the consumer surplus plus the producer surplus. The demand curve represents the willingness of the consumers to pay for a product, while the supply curve represents the willingness of the producers to supply the product at a certain price. The market price line is where the demand and supply curves intersect, which represents the equilibrium price and quantity of the product. Therefore, the area between the demand and supply curves and the price axis represents the total surplus in the market.

The Total Surplus in a Market Is Represented by the Area