For a linear and upward sloping supply curve and a linear downward sloping demand curve, when the consumer has to pay a positive price for the good, the consumer surplus is a
A)Rectangle.
B)Triangle.
C)Four-sided figure that is a rectangle on the bottom and a right triangle on the top whose hypotenuse is the demand curve.
D)Four-sided figure that is a rectangle on the bottom and a right triangle on the top whose hypotenuse is the supply curve.

Question

Quizplus · Accepted Answer

Consumer surplus is represented by the area between the demand curve and the price level, up to the quantity demanded. For a linear and downward sloping demand curve, this area forms a triangle.

For a Linear and Upward Sloping Supply Curve and a Linear