Question

Economic surplus is

demand price less equilibrium price

supply price above market price

consumer's surplus plus producer's surplus

none of the above

Answer 1

Ans. c) consumer's surplus plus producer's surplus

Economic surplus = Consumer surplus + producer surplus

Economic surplus is the sum of consumer surplus and producer surplus. In other words, economic surplus is the total welfare in the economy where consumer surplus is the benefits that receive when the consumers pay less than the willingness to pay for goods and producer surplus is the benefits that receive when selling at a higher price than the willingness to sell goods