Total surplus is:
A) the sum of consumer surplus and producer surplus.
B) measured as the area between the supply and demand curves from their beginnings to their ends.
C) the total net gain to consumers from trading in the market.
D) the total net gain to producers from trading in the market.

Question

Quizplus · Accepted Answer

Total surplus is the combination of both consumer surplus (the difference between what consumers are willing to pay and what they actually pay) and producer surplus (the difference between what producers receive and what they are willing to accept). It represents the overall benefit gained by both consumers and producers in a market transaction.

Total Surplus Is