Given the Following Two Equations

question 15

Essay

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

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Definitions:

Quantity Demanded

The amount of a product or service consumers are willing and able to purchase at a given price.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price within a certain time period.

Supply Unchanged

A situation in which the quantity of a good or service available in the market does not increase or decrease over a period.

Quantity Supplied

The volume of a good or service that manufacturers are prepared and able to offer for sale at an established price within a given interval.