The Sum of Consumer Surplus and Producer Surplus Is Equal

question 202

Multiple Choice

The sum of consumer surplus and producer surplus is equal to

• A)the deadweight loss.
• B)the economic surplus.
• C)zero.
• D)total profit.

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Definitions:

Substitute

A product or service that can be used in place of another to satisfy consumer demand.

Quantity Supplied

The amount of a good or service that producers are willing to sell at a given price over a specified period.

Milk

A nutrient-rich liquid food produced by the mammary glands of mammals, widely consumed by humans.

Complement

A good or service that is used together with another good or service, increasing demand for one another (e.g., printers and ink cartridges).