Suppose that a market is in equilibrium.The area between the demand curve and the market price is
A)total economic surplus.
B)producer surplus.
C)consumer surplus.
D)the deadweight loss.
E)the degree of overconsumption.

Question

Quizplus · Accepted Answer

The area between the demand curve and the market price represents the consumer surplus, which is the difference between what consumers are willing to pay for a good or service and the actual market price they pay. In an equilibrium, both consumers and producers receive a surplus, but the area only represents the consumer side of the market. Therefore, the best choice is C, consumer surplus.

Suppose That a Market Is in Equilibrium