A socially optimal price maximizes: a. Producer surplus and minimizes consumer surplus, b. Deadweight loss, c. Consumer surplus and minimizes producer surplus, d. Total surplus.

Question:

A socially optimal price maximizes:

a. Producer surplus and minimizes consumer surplus,

b. Deadweight loss,

c. Consumer surplus and minimizes producer surplus,

d. Total surplus.

What Is Consumer Surplus:

The Consumer Surplus is an important indicator used in Economics to determine whether a price level is optimal. The Consumer Surplus represents the different between the actual price paid and the maximum that consumers are willing to pay for that good or service.

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Consumer Surplus: Definition, Formula & Examples

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Chapter 7 / Lesson 6

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Learn the consumer surplus definition and see how it is determined by the people purchasing the product. Study consumer surplus examples using its formula.

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A socially optimal price maximizes: a. Producer surplus and minimizes consumer surplus, b....

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What Is Consumer Surplus:

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