The area between the demand curve and the price line is called
A)shortage.
B)the budget constraint.
C)marginal benefit.
D)consumer surplus.
E)marginal utility.

Question

Quizplus · Accepted Answer

The area between the demand curve and the price line represents the difference between the maximum price that a consumer is willing to pay for a good or service (as indicated by the demand curve) and the actual price that the consumer pays (as indicated by the price line). This difference is known as consumer surplus. Therefore, the correct answer is D) consumer surplus.

The Area Between the Demand Curve and the Price Line