Which Equation Calculates Total Surplus

question 99

Multiple Choice

Which equation calculates total surplus

• A)Total surplus = Value to buyers - Amount received by sellers + Amount paid by buyers - Costs of sellers
• B)Total surplus = Amount received by sellers - Value to buyers + Amount paid by buyers - Cost of sellers
• C)Total surplus = Value to buyers - Amount paid by buyers + Amount received by sellers - Costs of sellers
• D)Total surplus = Amount received by sellers - Costs of sellers + Amount paid by buyers - Value to buyers

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Definitions:

Domestic Consumers

Domestic consumers refer to individuals or entities within a country that purchase goods or services for personal use.

Free Trade

The exchange of goods and services between nations without restrictive regulations such as tariffs, duties, or quotas, intended to create more efficient markets.

International Trade

The exchange of goods, services, and capital across international borders or territories.

Buyers Better Off

Refers to a situation in which consumers have an improved position, typically through lower prices, better quality, or more choices available in the market.