Total surplus is the area
A) above the supply curve and below the price.
B) below the demand curve and above the price.
C) below the demand curve and above the supply curve.
D) below the supply curve and above the price.
E) above the demand curve and below the price.

Question

Quizplus · Accepted Answer

Total surplus is the sum of consumer surplus (area below the demand curve and above the price) and producer surplus (area below the price and above the supply curve). Therefore, total surplus is the area below the demand curve and above the supply curve. Option C is the only one that represents this area.

Total Surplus Is the Area