Question

When a market is in equilibrium, we can maximize total surplus by: Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices changing the quantity traded. doing nothing. reallocating sales among sellers. reallocating consumption among consumers.

Answer 1

The answer is: doing nothing

Step-by-step explanation:

Total surplus is maximized when the price of a product or service equals the equilibrium price.

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a product and the price of the product. Producer surplus is the difference between the maximum price a suppler is willing and able to sell its product and the price of the product.

Consumer surplus and producer surplus are opposites and both are balanced at an equilibrium price.