Figure 9.2 -Refer to Figure 9.2. At price 0E and quantity Q^*, consumer surplus is the area A) 0FCQ^*. B) AFC. C) EFC. D) AEC. E) none of the above

Question

Quizplus · Accepted Answer

Consumer surplus is measured as the difference between what a consumer is willing to pay for a good or service and what they actually have to pay. In Figure 9.2, consumer surplus is represented by the area above price P0 and below the demand curve, up until the quantity purchased at that price (QS1). At price 0E, the consumer surplus is the area EFC.

Figure 9.2 -Refer to Figure 9.2. at Price 0E and Quantity Q*

Figure 9.2 -Refer to Figure 9.2. at Price 0E and Quantity Q^*