Figure 9.1.2 -Refer to Figure 9.1.2 above. 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 the area between the demand curve and the price line up to the quantity purchased. At price 0E and quantity Q^*, consumer surplus is the triangle EFC, which is the area between the demand curve S1S1 and the price line 0E up to quantity Q^*. Therefore, the correct choice is C) EFC.

Figure 9.1.2 -Refer to Figure 9.1.2 Above. at Price 0E and Quantity