The value of the market to society is
A)the consumer surplus it generates.
B)the producer surplus it generates.
C)the sum of the producer and consumer surpluses.
D)consumer surplus minus producer surplus.

Question

Quizplus · Accepted Answer

Consumer and producer surpluses are both important components of the overall value of a market to society. Consumer surplus represents the difference between what consumers are willing to pay for goods or services and what they actually pay, while producer surplus represents the difference between what producers receive for goods or services and their cost of production. The sum of these surpluses represents the total value created by the market to both consumers and producers, and therefore to society as a whole.

The Value of the Market to Society Is