Question

Social surplus is the​ ____________. A. total value from trade in a markettotal value from trade in a market. B. difference between the amount that buyers actually pay and what they wish to pay. C. excess of aggregate demand over aggregate supply. D. difference between consumer surplus and producer surplusdifference between consumer surplus and producer surplus.

Answer 1

Answer:

The correct answer is letter "A": total value from trade in a market.

Explanation:

Canadian economist Alex Tabarrok (born in 1966) explains social surplus as the sum of consumer surplus, producer surplus, and bystanders surplus. Tabarrok takes an integrative approach in consumer surplus by stating social surplus encompasses every economic trade in the market rather than only consumers and producers surplus.

Besides, Tabarrok believes when there are major external costs or benefits, the market will not reach its social surplus.