Asked by Alyssa E McVey on May 09, 2024
Verified
The total of consumer plus producer surplus is ________ at the market equilibrium.
A) greatest
B) smallest
C) zero
D) negative
Market Equilibrium
A state in which market supply and demand balance each other, resulting in stable prices and quantities.
- Master the understanding of market equilibrium's significance and effects in boosting total surplus.
Verified Answer
MF
Melody FrancisMay 09, 2024
Final Answer :
A
Explanation :
At market equilibrium, the allocation of goods is at its most efficient because the amount of goods being supplied is exactly equal to the amount of goods being demanded. This means that both consumer and producer surplus are maximized, leading to the greatest total surplus.
Learning Objectives
- Master the understanding of market equilibrium's significance and effects in boosting total surplus.