On a graph,consumer surplus is represented by the area
A)between the demand and supply curves.
B)below the demand curve and above price.
C)below the price and above the supply curve.
D)below the demand curve and to the right of equilibrium price.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay for a good or service and what they actually pay. This is represented by the area below the demand curve (because it represents what the consumer is willing to pay) and above the actual price (because that is what they actually pay). Therefore, option B is the correct choice. Option A represents both consumer surplus and producer surplus, while options C and D are not accurate representations of consumer surplus.

On a Graph,consumer Surplus Is Represented by the Area