In the provided graph, the equilibrium point in the market is where the S and D curves intersect. At equilibrium, the total maximum amount that consumers would have been willing to pay for the
Product is represented by the area
A) a + b.
B) a + b + c.
C) a.
D) b + c.

Question

In the provided graph, the equilibrium point in the market is where the S and D curves intersect. At equilibrium, the total maximum amount that consumers would have been willing to pay for the
Product is represented by the area
A) a + b. 
B) a + b + c. 
C) a. 
D) b + c.

Quizplus · Accepted Answer

At equilibrium, the total maximum amount that consumers are willing to pay is represented by the area under the demand curve up to the equilibrium quantity, which is a + b + c. Therefore, the correct answer is choice B, which includes the areas of both consumer surplus (a + b) and producer surplus (c).

In the Provided Graph, the Equilibrium Point in the Market