A measure of consumer surplus in any market is
A)total expenditure on the good
B)the area above the supply curve and below the price
C)the area beneath the demand curve
D)the area beneath the demand curve and above the price
E)the market price

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay for a good or service and what they actually pay. This can be represented by the area beneath the demand curve and above the price, as this area represents the amount that consumers would be willing to pay but do not have to. Options A, B, C, and E do not accurately represent consumer surplus in a market.

A Measure of Consumer Surplus in Any Market Is