The total consumer surplus for good X CANNOT be calculated as the:
A)sum of the individual consumer surpluses for all buyers of X.
B)area below the demand curve for X and above the price paid for X.
C)area bounded by the demand curve for X and the two axes.
D)sum,for all buyers of X,of the difference between what each buyer is willing to pay for X and the amount actually paid.

Question

Quizplus · Accepted Answer

The total consumer surplus for good X can be calculated using options A, B, and D. Option C only calculates the area bounded by the demand curve and the two axes, which is not an accurate measure of consumer surplus as it does not take into account the difference between what buyers are willing to pay and the amount actually paid.

The Total Consumer Surplus for Good X CANNOT Be Calculated