The following figure illustrates the demand and supply curves for a good in a competitive market.

-Refer to the figure above.Which areas on the graph represent the social surplus in this competitive market?
A) F + G
B) A + B + C + D + E + H + F + G
C) A + B + C + D + E +H
D) C + D

Question

The following figure illustrates the demand and supply curves for a good in a competitive market.
 
-Refer to the figure above.Which areas on the graph represent the social surplus in this competitive market?
A) F + G 
B) A + B + C + D + E + H + F + G 
C) A + B + C + D + E +H 
D) C + D

Quizplus · Accepted Answer

Social surplus in a competitive market is the sum of consumer surplus and producer surplus, which is represented by the areas above the supply curve and below the demand curve up to the equilibrium point.

The Following Figure Illustrates the Demand and Supply Curves for a Good