Consumer surplus plus producer surplus equals

Name: Consumer surplus plus producer surplus equals
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good/service and the actual price paid while producer surplus is the difference between the minimum price a producer is willing to accept for a good/service and the actual price received. The sum of consumer surplus and producer surplus gives the total economic value or social welfare.

Consumer Surplus Plus Producer Surplus Equals