According to the graph shown, consumer surplus is:
A) the area under the supply curve and above the price.
B) the area above the supply curve and below the price.
C) the area under the demand curve and above the market price.
D) the area above the demand curve and below the price.

Question

According to the graph shown, consumer surplus is:
A) the area under the supply curve and above the price. 
B) the area above the supply curve and below the price. 
C) the area under the demand curve and above the market price. 
D) the area above the demand curve and below the price.

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price that consumers are willing to pay for a good and the actual price they pay. This is represented by the area under the demand curve and above the market price in the graph shown. Therefore, the correct answer is C.

According to the Graph Shown, Consumer Surplus Is