Total surplus in a market is equal to
A)Consumer surplus + Producer surplus.
B)Value to buyers - Amount paid by buyers.
C)Amount received by sellers - Costs of sellers.
D)Producer surplus - Consumer surplus.

Question

Quizplus · Accepted Answer

Total surplus in a market refers to the economic welfare or benefit that accrues to both producers and consumers. It is the sum of consumer surplus (the difference between the maximum price consumers are willing to pay and the actual price they pay) and producer surplus (the difference between the minimum price producers are willing to accept and the actual price they receive). Therefore, Choice A is the correct answer, while B, C and D do not provide the complete calculation of total surplus.

Total Surplus in a Market Is Equal to