Micro-Economics

Name 3 ways which can increase total surplus

1) Reallocate consumption among consumers—take the good away from buyers who would have purchased the good in the market equilibrium, and give it to potential consumers who wouldn’t have bought it in equilibrium
2) Reallocate sale among sellers - take sales away from sellers who would have sold the good in the market equilibrium, and instead compel potential sellers who would not have sold the good in equilibrium to sell it
3) Change the quantity tradedcompel consumers and producers to transact either more or less than the equilibrium quantity

Discussion