Asked by Piper Chatman on Jul 26, 2024

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The total surplus in a market is the:

A) excess supply due to a price above the equilibrium price.
B) surplus that accrues when a good is not scarce,defined as the total amount (if any) by which quantity supplied exceeds quantity demanded at a zero price.
C) net benefit to consumers,defined as the excess of consumer surplus over producer surplus.
D) sum of consumer surplus and producer surplus.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total benefit to society from the production and trade of goods and services.

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service and the total amount they actually pay; a measure of consumer benefit.

Producer Surplus

The difference between the amount a producer is actually paid for a good compared to the minimum amount they would accept for the good.

  • Analyze the effects of price changes on consumer surplus and total surplus in a market.
  • Comprehend how market equilibrium is achieved and its significance to total surplus.
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BB
Brittany BurlisonJul 31, 2024
Final Answer :
D
Explanation :
Total surplus in a market is defined as the sum of consumer surplus and producer surplus. Consumer surplus is the difference between the maximum price consumers are willing to pay for a good and the actual price they pay, while producer surplus is the difference between the actual price producers receive for a good and the minimum price they are willing to accept. Therefore, the correct answer is D.