Use the following to answer question(s): Net Benefit

-(Exhibit: Net Benefit) Net benefit to society is maximized at point _______ , where consumer surplus is the area _______ , and producer surplus is the area _______ .
A) J; BCD; ABD
B) D; ABD; BCD
C) G; BCD; ABD
D) D; BCD; ABD

Question

Use the following to answer question(s): Net Benefit
 
-(Exhibit: Net Benefit) Net benefit to society is maximized at point _______ , where consumer surplus is the area _______ , and producer surplus is the area _______ .
A) J; BCD; ABD 
B) D; ABD; BCD 
C) G; BCD; ABD 
D) D; BCD; ABD

Quizplus · Accepted Answer

Net benefit to society is maximized where the consumer surplus and producer surplus areas are maximized, which typically occurs at the equilibrium point. In this case, point D represents that equilibrium. The area above the supply curve and below the price level (up to the demand curve) represents consumer surplus, which is BCD. The area below the price level and above the supply curve represents producer surplus, which is ABD.

Use the Following to Answer Question(s): Net Benefit