Asked by

Daniel Brandao
on Dec 11, 2024

verifed

Verified

When the market for a good is in equilibrium,

A) consumer surplus will equal producer surplus.
B) the total value created for consumers will equal the total cost of production for business firms.
C) all units valued more highly than the opportunity cost of production will be supplied.
D) all units that have value will be produced, regardless of their cost of production.

Equilibrium

A state of balance in a system where supply equals demand, and there is no external force prompting change.

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service and the total amount they actually pay.

Producer Surplus

The difference between what producers are willing and able to sell a good for and the actual price they receive, representing the benefit to sellers.

  • Appreciate the concept of market equilibrium and the dynamics by which prices are adjusted to match supply with demand.
verifed

Verified Answer

JB
julia balserDec 15, 2024
Final Answer:
Get Full Answer