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 is the sum of consumer surplus and producer surplus. This reflects the extra value that buyers and sellers receive from a transaction beyond what they paid or received. Consumers benefit from a transaction by paying less for a good or service than they would have been willing to pay, while producers benefit by receiving a higher price than they would have been willing to sell for. The total surplus represents the net benefit of a market transaction to society as a whole.

Total Surplus in a Market Is Equal to