Total surplus in a market is represented by the total area
A)under the demand curve and above the price.
B)above the supply curve and up to the equilibrium price.
C)under price and up to the point of equilibrium.
D)between the demand and supply curves up to the point of equilibrium.

Question

Quizplus · Accepted Answer

Total surplus is the sum of consumer surplus and producer surplus. Consumer surplus is the area below the demand curve and above the price, while producer surplus is the area above the supply curve and below the price. Therefore, the total surplus is represented by the area between the demand and supply curves up to the point of equilibrium, which is choice D.

Total Surplus in a Market Is Represented by the Total