A measure of consumer surplus determined by the area under the compensated demand curve is the approximate measure of consumer surplus.

Question

Quizplus · Accepted Answer

Consumer surplus is typically measured by the area above the price level and below the demand curve, not the compensated demand curve. The compensated demand curve, which adjusts for changes in income or utility, is used for different types of economic analysis.

A Measure of Consumer Surplus Determined by the Area Under