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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
total surplus is made up of the sum of [...]
Answer
consumer surplus and producer surplus.

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
total surplus is made up of the sum of [...]
Answer
?

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
total surplus is made up of the sum of [...]
Answer
consumer surplus and producer surplus.
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total surplus is made up of the sum of consumer surplus and producer surplus.

Original toplevel document

3.11. Total Surplus—Total Value minus Total Variable Cost
, for every one of those units, sellers would have been willing to sell it for less than they actually received. The total value to buyers was greater than the total variable cost to sellers. The difference between those two values is called <span>total surplus , and it is made up of the sum of consumer surplus and producer surplus. Note that the way the total surplus is divided between consumers and producers depends on the steepness of the demand and supply curves. If the supply curve is steeper than the demand c

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