Graph 7-4
-In Graph 7-4, at the market-clearing equilibrium, total surplus is represented by the area:
A)A + B + C
B)A + B + D + F
C)A + B + C + D + E +F
D)A + B + C + D + E + F + G + H

Question

Graph 7-4 
-In Graph 7-4, at the market-clearing equilibrium, total surplus is represented by the area:
A)A + B + C 
B)A + B + D + F 
C)A + B + C + D + E +F 
D)A + B + C + D + E + F + G + H

Quizplus · Accepted Answer

Total surplus in a market is the sum of consumer surplus and producer surplus. At the market-clearing equilibrium, this includes the areas above the supply curve and below the demand curve up to the equilibrium price, which are areas A, B, C, D, E, and F.

Graph 7-4 -In Graph 7-4, at the Market-Clearing Equilibrium, Total Surplus Is