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A seller would have been willing to accept less for a good than the market equilibrium price they actually received. What is the amount they gained, the gap between the equilibrium price and what they would have accepted, called?
AProducer surplus
BConsumer surplus
CDeadweight loss
DSocial surplus
Answer & Solution
Correct answer: A. Producer surplus
1. Producer surplus is defined from the seller's side of the transaction.
2. It is the gap between what a seller actually received and the minimum they would have accepted.
3. Consumer surplus is the mirror concept measured from the buyer's side instead.
4. Deadweight loss and social surplus describe market-wide totals, not one seller's individual gain.
_Source: OpenStax Principles of Macroeconomics for AP Courses (CC BY 4.0), Ch 3 "Demand and Supply", section 3.5 | Demand, Supply and Efficiency_
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