Consumer surplus is a gain from exchange, but producer surplus is a loss from exchange.

Question

Quizplus · Accepted Answer

The statement is incorrect. Consumer surplus and producer surplus are both gains from exchange, representing the difference between the highest price a buyer is willing to pay and the price they actually pay (consumer surplus), or the lowest price a seller is willing to accept and the price they actually receive (producer surplus).

Consumer Surplus Is a Gain from Exchange, but Producer Surplus