The difference between the value of a good to sellers and its price is known as:
A)consumer surplus.
B)producer surplus.
C)total utility.
D)demand.
E)supply.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price a producer receives for selling a good and the cost of producing it. This represents the value the good has to the producer above and beyond the cost of producing it, and is a measure of the producer's welfare. Consumer surplus, on the other hand, is the difference between the price a consumer is willing to pay and the price they actually pay, and represents the value the good has to the consumer above and beyond what they had to give up in order to purchase it. Total utility is a measure of the overall satisfaction a consumer gets from consuming a good, while demand and supply refer to the quantity of a good that buyers and sellers are willing and able to purchase or sell at a given price.

The Difference Between the Value of a Good to Sellers