Total surplus measures the
A) loss to buyers from paying higher prices plus the benefit to sellers from receiving lower prices.
B) buyers' willingnesses to pay less the sellers' costs.
C) fairness of the distribution of resources in society.
D) value to the government of goods and services sold in society.

Question

Quizplus · Accepted Answer

Total surplus is the difference between the buyers' willingness to pay and the sellers' cost of producing a good or service. It represents the overall benefit to society from a market transaction.

Total Surplus Measures the