Graphically,total utility can be determined by the amount of
A) deadweight loss enjoyed from a transaction.
B) producer surplus enjoyed from a transaction.
C) consumer surplus enjoyed from a transaction plus the amount of producer surplus enjoyed from a transaction.
D) consumer surplus enjoyed from a transaction.
E) consumer surplus enjoyed from a transaction minus the amount of producer surplus enjoyed from a transaction.

Question

Quizplus · Accepted Answer

Total utility is a measure of the total satisfaction or happiness a consumer receives from consuming a certain quantity of a good or service. This is represented graphically by the area under the demand curve and above the price. This area represents the consumer surplus, which is the difference between what a consumer is willing to pay for a good or service (as represented by the demand curve) and the actual price they pay. Hence, the correct answer is D) consumer surplus enjoyed from a transaction.

Graphically,total Utility Can Be Determined by the Amount of