An important result of market equilibrium is that [...]
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total surplus is maximized
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Open it An important result of market equilibrium is that total surplus is maximized at the equilibrium price and quantity.
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3.11. Total Surplus—Total Value minus Total Variable Cost and curve is steeper, consumers capture more of the surplus.
In a fundamental sense, total surplus is a measure of society’s gain from the voluntary exchange of goods and services. Whenever total surplus increases, society gains. <span>An important result of market equilibrium is that total surplus is maximized at the equilibrium price and quantity. Exhibit 14 combines the supply curve and the demand curve to show market equilibrium and total surplus, represented as the area of the shaded triangle. The area of that triangle is the
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