Surplus refers to the difference between:
A) the price at which a buyer or seller would be willing to trade and the actual price.
B) the willingness to pay and the actual price paid.
C) the willingness to sell and the actual price accepted.
D) All of these are correct.

Question

Quizplus · Accepted Answer

Surplus can refer to both consumer surplus and producer surplus. Consumer surplus is the difference between what consumers are willing to pay and what they actually pay (B), while producer surplus is the difference between what sellers are willing to accept and the actual price they receive (C). Both definitions involve a comparison between the ideal or willing price and the actual transaction price, making all the provided options correct descriptions of different types of surplus (A, B, C).

Surplus Refers to the Difference Between