Asked by Vanessa Jimenez on Jul 17, 2024
Verified
Total surplus in a market is consumer surplus minus producer surplus.
Total Surplus
The sum of consumer surplus and producer surplus, representing the total net benefits to society from the production and consumption of goods.
Producer Surplus
The difference between the amount producers are willing to sell a good for and the actual higher amount they receive by selling it at the market price.
- Evaluate the total economic surplus and appreciate the breakdown between consumer and producer shares.
Verified Answer
XF
Xavian FairleyJul 24, 2024
Final Answer :
False
Explanation :
Total surplus in a market is the sum of consumer surplus and producer surplus, not the difference between them.
Learning Objectives
- Evaluate the total economic surplus and appreciate the breakdown between consumer and producer shares.
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