A student has a demand equation and a selling price. What kind of surplus can the student calculate with this information?
A)T he consumers' surplus
B)T he producers' surplus
C)B oth the consumers' and producers' surpluses

Question

Quizplus · Accepted Answer

With a demand equation and a selling price, the student can calculate the consumers' surplus, which is the difference between what consumers are willing to pay and what they actually pay. The producers' surplus requires a supply equation.

A Student Has a Demand Equation and a Selling Price