Given the Following Two Equations

question 204

Essay

Given the following two equations:
1) Tatal Suplus = Consumer Suplus + Produce Suplus
2) Total Surglus = Value to Buyers - Cost to Sellers Show how equation (1) can be used to derive equation (2).

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, providing voting rights, and entitling holders to a share of the company's success through dividends and/or capital appreciation.

Net Increase

The total growth in value or quantity after accounting for all additions and subtractions.

Stock Dividend

A payment to shareholders made in the form of additional shares rather than cash, often used by companies to conserve cash while still providing a dividend.

Operating Cash Inflows

Cash received by a company from its ongoing, regular business activities, such as sales revenue.