In economics, the concept of surplus:
A) measures the benefit that people receive when they buy something for less than they would have been willing to pay.
B) measures the benefit that people receive when they sell something for more than they would have been willing to accept.
C) is the best way to look at the benefits people receive from successful transactions.
D) All of these are correct.

Question

Quizplus · Accepted Answer

Surplus is the difference between the amount that a buyer is willing to pay for a good or service and the actual price paid. It can also refer to the difference between the amount that a seller is willing to accept for a good or service and the actual price received. Therefore, both options A and B are correct. The concept of surplus is important in economics as it helps to measure the overall benefit of an economic transaction. Therefore, option C is also correct. Hence, the correct answer is D.

In Economics, the Concept of Surplus