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

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay for a good or service (represented by the demand curve) and what they actually pay (the market price). Thus, it is the area below the demand curve and above the market price.

Consumer Surplus Is the Area