What is producer surplus?
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The total surplus with a tax is equal to:
a) Consumer surplus plus producer surplus plus tax revenue
b) Consumer surplus plus producer surplus
c) Consumer surplus minus producer surplus
d) Consumer surplus plus producer surplus minus tax revenue
The gains from trade within a price system is:
A) The sum of consumer surplus and producer surplus
B) consumer surplus divided by producer surplus
C) consumer surplus multiplied by producer surplus
D) consumer surplus less producer surplus