The total of consumer plus producer surplus is greatest
A) when consumer surplus is maximized.
B) when producer surplus is maximized.
C) at the market equilibrium.
D) all of the above

Question

Quizplus · Accepted Answer

The total of consumer plus producer surplus is greatest at the market equilibrium because this is where the quantity supplied equals the quantity demanded, leading to the most efficient allocation of resources.

The Total of Consumer Plus Producer Surplus Is Greatest