economic surplus is\na. equal to producer surplus - consumer surplus.\nb. equal to consumer surplus…

economic surplus is\na. equal to producer surplus - consumer surplus.\nb. equal to consumer surplus - producer surplus.\nc. the sum of consumer surplus and producer surplus.\nd. the product of consumer surplus and producer surplus\ndeadweight loss is\na. the reduction in economic surplus resulting from a market not being in competitive equilibrium.\nb. the reduction in sales revenue resulting from market distortions.\nc. a measure of market equity.\nd. the reduction in consumer expenditure resulting from market failure.

economic surplus is\na. equal to producer surplus - consumer surplus.\nb. equal to consumer surplus - producer surplus.\nc. the sum of consumer surplus and producer surplus.\nd. the product of consumer surplus and producer surplus\ndeadweight loss is\na. the reduction in economic surplus resulting from a market not being in competitive equilibrium.\nb. the reduction in sales revenue resulting from market distortions.\nc. a measure of market equity.\nd. the reduction in consumer expenditure resulting from market failure.

Answer

Brief Explanations:

Economic surplus is the total benefit to society from the production and consumption of a good or service, which is the sum of consumer surplus (the difference between what consumers are willing to pay and what they actually pay) and producer surplus (the difference between what producers receive and the minimum they are willing to sell for). Deadweight loss occurs when the market is not in competitive equilibrium, reducing the total economic surplus. It represents the loss of economic efficiency when the optimal quantity of a good or service is not produced and consumed.

Answer:

  1. C. the sum of consumer surplus and producer surplus.
  2. A. the reduction in economic surplus resulting from a market not being in competitive equilibrium.