Suppose a Market Is in Equilibrium

question 21

Multiple Choice

Suppose a market is in equilibrium.The area between the market price and the supply curve is:

• A)the surplus loss.
• B)producer surplus.
• C)consumer surplus.
• D)total economic surplus.

---

Definitions:

Elastic

Describes the responsiveness of the quantity demanded or supplied of a good or service to a change in its price.

Price Elasticity

A measure that describes how the quantity demanded of a good changes in response to a change in its price.

Quantity Supplied

The quantity of a product or service that sellers are ready and capable of offering for sale at a certain price during a designated period.

Demand

The amount of a product or service that buyers are prepared and capable of buying at different price levels within a given time frame.