Consumer surplus is equal to the area
A)under the demand curve and above the supply curve.
B)above the supply curve and below the price line.
C)under the demand curve.
D)under the demand curve and above the price line.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum amount that a consumer is willing to pay for a good or service and the actual price that they pay. It is represented by the area under the demand curve and above the price line. Therefore, option D is the correct answer as it includes both the area under the demand curve and above the price line.

Consumer Surplus Is Equal to the Area