Which of the following best defines economic surplus in microeconomics?

• A. The total revenue earned by producers in a market.
• B. The amount of goods produced in excess of consumer demand.
• C. The sum of consumer surplus and producer surplus in a market.
• D. The difference between the maximum price a consumer is willing to pay and the actual price paid.

Answer: (C)

Verified step by step guidance

1. Understand that economic surplus in microeconomics refers to the overall benefit that participants in a market receive from trade.
2. Recall that consumer surplus is the difference between what consumers are willing to pay for a good and what they actually pay.
3. Recall that producer surplus is the difference between the price producers receive for a good and the minimum price at which they are willing to sell.
4. Recognize that economic surplus is the sum of consumer surplus and producer surplus, representing the total net benefit to society from market transactions.
5. Compare the given options and identify that the correct definition of economic surplus is the sum of consumer surplus and producer surplus in a market.