In a free market in which an equilibrium price and quantity prevails:
A) consumer surplus is less than producer surplus.
B) consumer surplus is greater than producer surplus.
C) consumer surplus is the same as producer surplus.
D) consumer surplus and producer surplus are maximized.

Question

Quizplus · Accepted Answer

In a free market at equilibrium, both consumer surplus and producer surplus are maximized, meaning the total welfare is at its highest possible level.

In a Free Market in Which an Equilibrium Price and Quantity