A _ surplus is a net benefit that everyone receives from participating in the market and is measured by the sum of consumer surplus and producer surplus without __.

A _________ surplus is a net benefit that everyone receives from participating in the market and is measured by the sum of consumer surplus and producer surplus without __________.

Group of answer choices：

Producer: Government

Total: Government

Total: Trade

Consumer: Trade barriers

Solutions

Expert Solution

If we talk in very simple terms then total surplus is the sum of consumer surplus and producer surplus

consumer surplus is from the buyer side and producer surplus is from the supplier side

it is a total or the net benefit that everyone receives and at equilibrium when there is no deadweight loss the total surplus is at its maximum

It gives the value without any kind of trade because when we talk about trade or free market trade then there is some kind of dead weight loss and government revenuewhich is reduces the value of total surplus

the correct answer here is option C

Rahul Sunny answered 1 year ago

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