Maximum total surplus in the market for chocolate occurs when:
A) the total net gain to producers is minimized.
B) all consumers who value chocolate can buy chocolate.
C) all producers can sell their chocolate.
D) the market is in equilibrium.

Question

Quizplus · Accepted Answer

The market will be in equilibrium when the quantity demanded of chocolate equals the quantity supplied of chocolate, which will result in the highest total surplus in the market. At this point, all consumers who value chocolate the most will be able to buy it, and all producers who can sell chocolate profitably will be able to sell it. Minimizing the net gain to producers or allowing all producers to sell their chocolate may not necessarily result in the maximum total surplus in the market.

Maximum Total Surplus in the Market for Chocolate Occurs When