At equilibrium in a market for a product, the total revenues received by sellers equal the:
A) Market producer surplus
B) Total amount spent by buyers on the product
C) Total profits of sellers
D) Market consumer surplus

Question

Quizplus · Accepted Answer

At equilibrium, the quantity demanded by buyers equals the quantity supplied by sellers, and the market price is set. This price is paid by buyers, so the total revenues received by sellers equal the total amount spent by buyers on the product. The other options (A, C, and D) refer to different concepts that can be important in analyzing a market but do not represent the total revenues received by sellers at equilibrium.

At Equilibrium in a Market for a Product, the Total