Consumer surplus is the area under the marginal benefit curve but above the market price.

Name: Consumer surplus is the area under the marginal benefit curve but above the market price.
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Question

Quizplus · Accepted Answer

Consumer surplus is defined as the difference between the maximum price a consumer is willing to pay for a product and the actual price they end up paying. This difference can be represented by the area under the marginal benefit curve and above the market price. Therefore, the statement is true.

Consumer Surplus Is the Area Under the Marginal Benefit Curve