Total surplus in a market is equal to
A)Value to buyers - Amount paid by buyers.
B)Amount received by sellers - Costs of sellers.
C)Value to buyers - Costs of sellers.
D)Amount received by sellers - Amount paid by buyers.

Question

Quizplus · Accepted Answer

Total surplus in a market represents the overall benefit received by both buyers and sellers from participating in a market transaction. It is calculated as the difference between the total value to buyers and the total cost to sellers. This option correctly reflects the formula for calculating total surplus, whereas the other options either miss a component or have the components in the wrong order.

Total Surplus in a Market Is Equal to