Graphically, how is consumer surplus measured?
A) by the area below the demand curve, but above the upward-sloping supply curve
B) by the area below the market demand curve, but above the supply curve
C) by the area below the demand curve
D) by the area below the demand curve, but above the market price

Question

Quizplus · Accepted Answer

Consumer surplus is measured by the area below the demand curve and above the market price, representing the difference between what consumers are willing to pay and what they actually pay.

Graphically, How Is Consumer Surplus Measured