Surplus is:
A)a better measure of the value that buyers and sellers get from participating in a market than price itself.
B)maximized for individuals whose reservation price equals the market price.
C)negative for those who do not participate in a market.
D)All of these are true.

Question

Quizplus · Accepted Answer

Surplus, specifically consumer and producer surplus, measures the benefit or value that buyers and sellers receive from participating in a market, beyond just the price. It reflects the difference between what consumers are willing to pay and what they actually pay, and what producers are willing to accept and what they actually receive.

Surplus Is