In a Competitive Equilibrium, the Total Consumer Surplus Must Equal

question 313

True/False

In a competitive equilibrium, the total consumer surplus must equal the total producer surplus.

---

Definitions:

Equilibrium Quantity

The amount of products or services available that matches the amount requested at the price where supply and demand balance.

Supply Increases

A situation where the quantity of a good or service that producers are willing to supply at a certain price rises.

Equilibrium Price

The market price where the quantity of goods supplied is equal to the quantity of goods demanded.

Supply Decreases

A situation in which the quantity of a product or service that producers are willing and able to sell at all possible prices falls.