Question

Total surplus is the areaa. above the supply curve and below the price.b. below the supply curve and above the price.c. above the demand curve and below the price.d. below the demand curve and above the price.e. below the demand curve and above the supply curve.

Answer 1

Answer:

e. below the demand curve and above the supply curve.

Explanation:

The total surplus is the sum of both, the consumer surplus

(d)below the supply curve and above the price

andthe supplier surplier surplus

(a)above the supply curve and below the price

This would be total economic welfare.