Asked by MATTANAPORN CHANTIYANON on Jul 14, 2024
Verified
Total surplus is the excess of consumer surplus over producer surplus.
Total Surplus
The total net gain to society from a market transaction, which is the combination of consumer surplus and producer surplus.
Consumer Surplus
The gap between the aggregate amount buyers are willing and able to spend for a good or service, versus what they actually spend.
- Master the conceptual framework of total surplus, including the components of consumer surplus and producer surplus.
Verified Answer
AW
Asharia WoolardJul 19, 2024
Final Answer :
False
Explanation :
Total surplus is the sum of consumer surplus and producer surplus, not the excess of one over the other.
Learning Objectives
- Master the conceptual framework of total surplus, including the components of consumer surplus and producer surplus.
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