When a market is in equilibrium,
A)consumer surplus is minimized.
B)producer surplus is minimized.
C)total surplus is maximized.
D)All of these are true.

Question

Quizplus · Accepted Answer

In a market that is in equilibrium, the quantity demanded is equal to the quantity supplied at the market price, which is the price where the total surplus (the sum of consumer and producer surpluses) is maximized. Therefore, C is the best choice. A and B are incorrect because minimized surplus is not desirable, and D is a possibility but not the best choice since only C directly relates to the concept of equilibrium.

When a Market Is in Equilibrium