Total surplus
A)can be used to measure society's well-being.
B)is the sum of consumer and producer surplus.
C)amounts to value to buyers minus cost to sellers.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Total surplus is a measure of societal well-being as it represents the overall benefit to both consumers and producers. It is calculated as the sum of consumer surplus (the difference between what consumers are willing to pay and what they actually pay) and producer surplus (the difference between the price producers receive and the cost to produce). Therefore, option B is correct. Additionally, option C is also correct as it explains how total surplus is calculated.

Total Surplus