The Gains from Consumer Surplus and Producer Surplus Occur When

question 147

Multiple Choice

The gains from consumer surplus and producer surplus occur when

• A) both consumers and producers engage in voluntary exchange.
• B) consumers are willing to buy a good but producers are not willing to provide it.
• C) producers are willing to provide a good but consumers are not willing to pay for it.
• D) the government supplies the good instead of firms.