Refer to Figure 9.1.3 above. If the market is in equilibrium, total consumer and producer surplus is:

A) $0.
B) $4.
C) $5.
D) $600.
E) $800.

Consumer Surplus

The gap between the total sum consumers can and will pay for a good or service versus what they actually spend.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, measured above the supply curve.

Market Equilibrium

Market equilibrium occurs when the quantity demanded by consumers perfectly matches the quantity supplied by producers, resulting in no excess supply or demand within the market.