The concept of surplus can:
A) show the benefits of introducing new markets.
B) show who benefits from a tax.
C) show who loses from minimum wage.
D) show any of these.

Question

Quizplus · Accepted Answer

The concept of surplus can show the benefits of introducing new markets, as it can create consumer surplus, producer surplus, and overall economic surplus. It can also show who benefits from a tax, as the tax may reduce consumer surplus and increase government revenue, or vice versa. Additionally, it can show who loses from minimum wage, as the increase in the wage may reduce employment and decrease economic surplus for some parties.

The Concept of Surplus Can