The figure below shows the demand, supply, and marginal social benefit curves for Good Y.

-Refer to the figure above.Social surplus can be increased by ________.

Question

The figure below shows the demand, supply, and marginal social benefit curves for Good Y.
 
-Refer to the figure above.Social surplus can be increased by ________.

Quizplus · Accepted Answer

Increasing output above 13 million units can increase social surplus by capturing the area under the demand curve and above the supply curve that is not currently being captured at the output of 13 million units. This area represents the consumer and producer surplus that would be gained from producing and consuming additional units, up to the point where the supply and demand curves intersect.

The Figure Below Shows the Demand, Supply, and Marginal Social