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Unformatted text preview: and since Producer Surplus = Amount received by sellers – Costs of sellers, then Total Surplus can be written as: Value to buyers – Amount paid by buyers + Amount received by sellers – Costs of sellers. Since the Amount paid by buyers equals the Amount received by sellers, the middle two terms cancel out and the result is: Total Surplus = Value to buyers – Costs of sellers....
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This note was uploaded on 10/22/2009 for the course ARE 201 taught by Professor Eryuruk during the Fall '08 term at N.C. State.
- Fall '08