ECONOMICS
CONSUMERS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Consumer surplus = Value to buyers-Amount paid by buyers
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Producer surplus = Amount received by sellers-Cost to sellers
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Total surplus = Value to buyers-Amount paid by buyers + Amount received by sellers-Costs of sellers
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Total surplus = Value to sellers-Cost to sellers
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Detailed explanation-1: -Total market surplus can be calculated as total benefits – total costs.
Detailed explanation-2: -Total surplus = Value to buyers-Cost to sellers. Consumer surplus equals buyers’ willingness to pay for a good minus the amount they actually pay, and it measures the benefit buyers get from participating in a market. Consumer surplus can be computed by finding the area below the demand curve and above the price.
Detailed explanation-3: -The Formula for Consumer Surplus Qd = the quantity at equilibrium where supply and demand are equal. P = Pmax – Pd, or the price at equilibrium where supply and demand are equal. Pmax = the price a consumer is willing to pay.
Detailed explanation-4: -Producer surplus = Market price – Producer’s Minimum Acceptable Price. Alternatively, it is also calculated as follows: Producer surplus = Total Revenue – Production Cost.