Figure 7-23
-Refer to Figure 7-23.At equilibrium,total surplus is represented by the area
A)A+B+C.
B)A+B+D+F.
C)A+B+C+D+H+F.
D)A+B+C+D+H+F+G+I.

Question

Figure 7-23 
-Refer to Figure 7-23.At equilibrium,total surplus is represented by the area
A)A+B+C. 
B)A+B+D+F. 
C)A+B+C+D+H+F. 
D)A+B+C+D+H+F+G+I.

Quizplus · Accepted Answer

Total surplus at equilibrium is represented by the sum of consumer surplus and producer surplus, which is A+B+C+D+H+F. This includes the area of the triangle between the demand and supply curves (A+B+C), the rectangle representing consumer surplus (D+F+H), and the rectangle representing producer surplus (B+H+I). Areas outside of this (G and E) do not contribute to total surplus.

Figure 7-23 -Refer to Figure 7-23.At Equilibrium,total Surplus Is Represented by the Represented