We appreciate your visit to Total surplus can be calculated as 1 Value to buyers minus amount paid by sellers 2 Amount received by sellers minus cost to sellers 3. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
Answer :
Final answer:
Total surplus in economics is calculated as the value to buyers minus the cost to sellers, which is the sum of consumer and producer surplus. It measures the overall economic welfare. Inaccurate production levels may cause a deadweight loss, reducing total surplus.
Explanation:
In the context of economics, the total surplus can be calculated as the value to buyers minus the cost to sellers. This represents the sum of the consumer surplus and the producer surplus. Consumer surplus is the difference between the price that consumers are willing to pay and the market equilibrium price. Producer surplus, on the other hand, represents the difference between the price at which producers are willing to sell a product and the market equilibrium price. The sum of these two surpluses gives us the total surplus. Inaccurate levels of production can result in a deadweight loss, which is a decrease in total surplus.
Learn more about Total Surplus here:
https://brainly.com/question/34586078
#SPJ11
Thanks for taking the time to read Total surplus can be calculated as 1 Value to buyers minus amount paid by sellers 2 Amount received by sellers minus cost to sellers 3. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!
- Why do Businesses Exist Why does Starbucks Exist What Service does Starbucks Provide Really what is their product.
- The pattern of numbers below is an arithmetic sequence tex 14 24 34 44 54 ldots tex Which statement describes the recursive function used to..
- Morgan felt the need to streamline Edison Electric What changes did Morgan make.
Rewritten by : Barada