Which of the Following Equations Is Not Valid

question 74

Multiple Choice

Which of the following equations is not valid?

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

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Definitions:

Consumer Choice

The decision-making process by which individuals select from available alternatives to maximize their satisfaction.

Income Rises

An increase in the amount of money earned from work, investments, or other sources over a period of time.

Particular Good

A specific item or product that is distinguished by its unique characteristics and attributes, offering distinct benefits to the consumer.

Budget Constraint

The limitations on the consumption choices of an individual or family due to their income and the prices of goods and services.