Total surplus can be increased if:
A)new markets are created.
B)existing markets are improved.
C)markets get closer to equilibrium.
D)All of these can increase total surplus.

Question

Quizplus · Accepted Answer

All of these options can increase total surplus. Creating new markets can increase economic activity and expand consumer choice, improving existing markets can reduce transaction costs and enhance competition, and reaching equilibrium in markets can improve efficiency and reduce deadweight loss. Therefore, any effort to promote market expansion, improvement, or stabilization can increase total surplus.

Total Surplus Can Be Increased If