Total surplus in a market is
A)the total cost to sellers of providing the good minus the total value of the good to buyers.
B)the total value of the good to buyers minus the cost to sellers of providing the good.
C)the difference between consumer surplus and sellers' cost.
D)always smaller than producer surplus.

Question

Quizplus · Accepted Answer

Total surplus in a market is the total value of the good to buyers minus the cost to sellers of providing the good. This includes both consumer surplus (the extra value buyers receive from paying less than they were willing to pay) and producer surplus (the extra profit sellers receive from selling for more than it cost them to produce).

Total Surplus in a Market Is