Asked by Vanessa Jimenez on Jul 17, 2024

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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.
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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.