The Role of Price in Total Surplus Calculation
An economics student argues: 'If the market price of a good increases while the number of units sold remains the same, sellers are clearly better off and buyers are worse off. Therefore, the total benefit to society from this market, represented by the total surplus, must have changed.' Critically evaluate this student's argument. In your explanation, detail how price affects consumer surplus and producer surplus individually, and then explain why it does or does not affect the total surplus when the quantity exchanged is constant.
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Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
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