Assume the market depicted in the graph is in equilibrium. Total surplus consists of area(s):
A) A + B + C.
B) B.
C) A.
D) A + B.

Name: Assume the market depicted in the graph is in equilibrium. Total surplus consists of area(s): A) A + B + C. B) B. C) A. D) A + B.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Assume the market depicted in the graph is in equilibrium. Total surplus consists of area(s):
A) A + B + C. 
B) B. 
C) A. 
D) A + B.

Quizplus · Accepted Answer

Total Surplus consists of Consumer surplus (A) and Producer Surplus (B). Therefore, the total surplus would be the sum of A and B, which is represented by choice D.

Assume the Market Depicted in the Graph Is in Equilibrium