Consumer surplus is highest when the demand curve is __________; producer surplus is greatest when the supply curve is _________.

Question

Quizplus · Accepted Answer

Consumer surplus is highest when the demand curve is inelastic because consumers are willing to pay more than the equilibrium price. Producer surplus is greatest when the supply curve is inelastic because producers can charge higher prices without losing sales.

Consumer Surplus Is Highest When the Demand Curve Is __________;