Use the figure below to answer the following questions. Figure 5.2.3 -Refer to Figure 5.2.3 If the price is P₁,what area on the graph indicates consumer surplus? A)A B)B plus C C)D plus E D)A plus B plus C E)A plus B plus C plus D plus E

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the price consumers are willing to pay for a good and the price they actually pay. In Figure 5.2.3, the price is P1. The area below the demand curve and above the price line (P1) represents the consumer surplus. This area is labeled as A on the graph.

Use the Figure Below to Answer the Following Questions