Which of the following equations is valid?
A) Consumer surplus = Total surplus - Cost to sellers
B) Producer surplus = Total surplus - Consumer surplus
C) Total surplus = Value to buyers - Amount paid by buyers
D) Total surplus = Amount received by sellers - Cost to sellers

Question

Quizplus · Accepted Answer

Producer surplus is calculated as total surplus minus consumer surplus, as total surplus is the sum of consumer and producer surplus.

Which of the Following Equations Is Valid