Which of the following equations is not valid?
A) Consumer surplus = Value to buyers - Amount paid by buyers
B) Producer surplus = Amount received by sellers - Cost to sellers
C) Total surplus = Value to buyers - Amount paid by buyers + Amount received by sellers - Costs of sellers
D) Total surplus = Value to sellers - Cost to sellers

Question

Quizplus · Accepted Answer

Total surplus is the sum of consumer surplus and producer surplus. D is not a valid equation because it only takes into account the value and cost to sellers, without considering the value and amount paid by buyers.

Which of the Following Equations Is Not Valid