According to the graph shown,if the market is in equilibrium,total surplus is area(s):
A)A.
B)A + B + C.
C)A + B + C + D + E.
D)D + E.

Question

According to the graph shown,if the market is in equilibrium,total surplus is area(s):
A)A. 
B)A + B + C. 
C)A + B + C + D + E. 
D)D + E.

Quizplus · Accepted Answer

Total surplus is the sum of consumer surplus (area A+B+C) and producer surplus (area D+E). Additionally, there is the deadweight loss (area E), which represents the loss in total surplus due to market inefficiency. Therefore, the correct answer is A+B+C+D+E.

According to the Graph Shown,if the Market Is in Equilibrium,total