Which of the following statements about market surplus is FALSE?

1. Market surplus equals the area under the demand curve and above the supply curve, up to the quantity in question.
2. Market surplus is equal to consumer surplus plus producer surplus.
3. If market surplus is maximized then there are no Pareto Improvements available among market participants.

Question options:

1.None of the statements is false.

2.I and III only.

3.III only.

4.I only.