The total consumer surplus enjoyed by all consumers in a market
A)exceeds the market price
B)is measured by the area under the market demand curve
C)is measured by the area beneath the market price
D)is a Pareto improvement
E)is called market consumer surplus

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay and what they actually pay, and when aggregated across all consumers, it is referred to as market consumer surplus.

The Total Consumer Surplus Enjoyed by All Consumers in a Market