Figure 7-21
-Refer to Figure 7-21.When the price is P1,area B represents
A)total surplus.
B)producer surplus.
C)consumer surplus.
D)profits.

Question

Figure 7-21 
-Refer to Figure 7-21.When the price is P1,area B represents
A)total surplus. 
B)producer surplus. 
C)consumer surplus. 
D)profits.

Quizplus · Accepted Answer

Area B in the graph represents consumer surplus, which is defined as the difference between what consumers are willing to pay for a good and what they actually pay. Therefore, when the price is P1, area B represents consumer surplus.

Figure 7-21 -Refer to Figure 7-21.When the Price Is P1,area B Represents