Total Surplus Is Equal to

question 51

Multiple Choice

Total surplus is equal to

• A)value to buyers - profit to sellers.
• B)value to buyers - cost to sellers.
• C)consumer surplus x producer surplus.
• D)(consumer surplus + producer surplus)x equilibrium quantity.

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Definitions:

Producer Surplus

The difference between the actual amount producers receive for a good or service and the minimum amount they are willing to accept.

Equilibrium Price

The price at which the quantity of a product demanded by consumers equals the quantity supplied by producers.

Diagram

A simplified drawing showing the appearance, structure, or workings of something.

Market Supply Curve

A graphical representation showing the total quantity of a good that sellers are willing and able to sell at various prices.