Total surplus is
A)the sum of consumer's surplus plus producer's surplus.
B)the consumer's surplus minus the producer's surplus.
C)the product price minus the sum of consumer's surplus and producer's surplus.
D)consumer surplus minus marginal utility of the produce.

Question

Quizplus · Accepted Answer

Total surplus is defined as the sum of consumer surplus and producer surplus, which represents the total welfare gained by both consumers and producers in a market exchange. It is calculated as the difference between the total value or benefit that consumers place on a good or service and the total cost of producing that good or service. Therefore, Choice A is the correct answer.

Total Surplus Is