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At equilibrium, total surplus is represented by the area ________?

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User Bikash
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Final answer:

Total surplus at equilibrium is represented by the sum of consumer surplus and producer surplus. It is also known as social surplus, economic surplus, or total surplus.

Step-by-step explanation:

The area that represents total surplus at equilibrium is the sum of consumer surplus and producer surplus. It is also referred to as social surplus, economic surplus, or total surplus. In Figure 2, social surplus is shown as the area F + G, which represents the triangular areas of consumer and producer surplus.

Social surplus is larger at equilibrium quantity and price than at any other quantity, demonstrating the economic efficiency of the market equilibrium. It is impossible to produce greater consumer surplus without reducing producer surplus, and vice versa.

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User Chad Schouggins
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