FORESTRY
FOREST PRODUCTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The summation of economic surplus before and after refers to the total economic loss2. Economic surplus before and after derived from the difference of consumer and producer surplus before and after.Which statement/s is/are false?
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1 only
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2 only
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Both 1 and 2
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Neither 1 nor 2
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Explanation:
Detailed explanation-1: -Economic surplus refers to the respective gains that a consumer or producer gets within an economic activity and is the combined benefit, sometimes referred to as “total welfare.” It can also be referred to as total surplus or community surplus as well.
Detailed explanation-2: -Economic surplus consists of consumer surplus and producer surplus. Consumer surplus occurs when the price for a product or service is lower than the highest price a consumer would willingly pay. A producer surplus is when goods are sold at a higher price than the lowest price the producer was willing to sell for.
There is 1 question to complete.