The consumer surplus is
A)the area under the demand curve form the origin to the quantity purchased.
B)the area under the supply curve form the origin to the quantity produced.
C)the area under the demand curve but above the price line from the origin to the quantity purchased.
D)the area under the supply curve but below the price line from the origin to the quantity purchased.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay for a good or service and what they actually pay. It is calculated by finding the area under the demand curve but above the price line from the origin to the quantity purchased. So, option C is the correct answer. Option A is incorrect because the area under the demand curve from the origin to the quantity purchased is the total revenue received by the seller, not the consumer surplus. Option B and D are incorrect because they refer to the producer surplus, not the consumer surplus.

The Consumer Surplus Is