Graphically,how is the consumer surplus measured?
A)the area above the demand curve
B)the area under the demand curve and above the market price
C)the area above the supply curve and below the market price
D)the area under the supply curve

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the price that consumers are willing to pay for a good and the actual market price they pay. Graphically, it is measured as the area under the demand curve and above the market price, as this represents the total value that consumers place on the good in excess of what they actually have to pay for it. Therefore, choice B is the correct answer.

Graphically,how Is the Consumer Surplus Measured