Consumer surplus in a market can be represented by the
A)area below the demand curve and above the price.
B)distance from the demand curve to the horizontal axis.
C)distance from the demand curve to the vertical axis.
D)area below the demand curve and above the horizontal axis.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay for a good or service (represented by the demand curve) and the market price they actually pay. Therefore, the area below the demand curve and above the price represents the consumer surplus in a market.

Consumer Surplus in a Market Can Be Represented by the