Total surplus in a market equals:
A)value to buyers - amount paid by buyers
B)amount received by sellers - costs of sellers
C)producer surplus - consumer surplus
D)consumer surplus + producer surplus

Question

Quizplus · Accepted Answer

Total surplus in a market is equal to the sum of consumer surplus and producer surplus. Consumer surplus is the difference between the value a consumer places on a good or service and the price they actually pay for it, while producer surplus is the difference between the price received by a producer and their cost of producing the good or service. When we add these two surpluses together, we get the total surplus in the market. Therefore, the correct answer is D, consumer surplus + producer surplus.

Total Surplus in a Market Equals