(Figure: Market Demand)Look at the figure Market Demand.The amount by which the total benefits to consumers exceed their total expenditure is called _____,and if the price is B,is depicted by the area _____.

Question

Quizplus · Accepted Answer

The amount by which the total benefits to consumers exceed their total expenditure is called consumer surplus, and if the price is B, it is depicted by the area BCD. Therefore, the correct answer is C. Option A is incorrect because producer surplus is the amount that producers benefit by selling at a market price that is higher than the price they would be willing to sell for. Option D is incorrect because net benefit is the difference between the total benefits and total costs, and it is not represented by any particular area in the figure.

(Figure: Market Demand)Look at the Figure Market Demand