The tools of consumer surplus and producer surplus enables us to determine whether free-market allocation of resources is desirable.

Question

Quizplus · Accepted Answer

Consumer surplus and producer surplus help us understand the efficiency and distribution of benefits in a market, and can help us determine whether a free-market allocation of resources is desirable or if there are potential inefficiencies or inequities that need to be addressed.

The Tools of Consumer Surplus and Producer Surplus Enables Us