Total surplus is
A)equal to consumer surplus minus producer surplus.
B)equal to the total value to buyers minus the total cost to sellers.
C)equal to consumers' willingness to pay plus producers' cost.
D)greater than the sum of consumer surplus plus producer surplus.

Question

Quizplus · Accepted Answer

Total surplus is the total benefit to society from a transaction, and it is equal to the total value to buyers minus the total cost to sellers. Consumer surplus and producer surplus are important components of total surplus, but on their own, they do not represent the total benefit to society. Therefore, choice B is the correct answer.

Total Surplus Is