Economics Consumer Surplus And Producer Surplus Questions
The impact of external benefits on consumer surplus and producer surplus is positive. External benefits refer to the positive effects that a transaction or activity has on individuals or entities not directly involved in the transaction. When external benefits are present, they increase the overall value or utility that consumers derive from a good or service, leading to an increase in consumer surplus. Additionally, external benefits can also enhance the profitability of producers, resulting in an increase in producer surplus. Therefore, external benefits have a positive impact on both consumer surplus and producer surplus.