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Figure 16.5
Using the figure above, identify the labeled structure(s) in each of the following questions.
-Identify the structure indicated by Label D.
Surplus I
A situation where the quantity supplied of a product exceeds the quantity demanded at the current price.
Consumer Surplus
The gap reflecting the difference between what consumers plan to pay for a good or service and what they pay in practice.
Surplus III
Excess of production or supply over demand in a market, leading to potential price reductions to clear the surplus stock.
Total Surplus
The sum of consumer surplus and producer surplus in a market, representing the total net benefit to society from trading a good or service.
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