Total surplus
A)can be used to measure a market's efficiency.
B)is the sum of consumer and producer surplus.
C)is the value to buyers minus the cost to sellers.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Total surplus represents the overall welfare that a market generates, and it can be used to measure a market's efficiency. It is also the sum of consumer and producer surplus, which are the benefits that buyers and sellers receive, respectively, from participating in a market transaction. The formula for total surplus is the value to buyers minus the cost to sellers. Therefore, all of the above statements are correct.

Total Surplus