FIGURE 6-7
-Refer to Figure 6-7. Suppose that price is P0. Total consumer surplus is then given by the area
A) under the demand curve to the left of Q0.
B) below P0 and to the left of Q0.
C) under the demand curve to the left of Q0, but above P0.
D) under the entire demand curve.
E) above the market price.

Question

FIGURE 6-7
-Refer to Figure 6-7. Suppose that price is P0. Total consumer surplus is then given by the area
A) under the demand curve to the left of Q0. 
B) below P0 and to the left of Q0. 
C) under the demand curve to the left of Q0, but above P0. 
D) under the entire demand curve. 
E) above the market price.

Quizplus · Accepted Answer

Consumer surplus is the area under the demand curve and above the price level, up to the quantity demanded.

FIGURE 6-7 -Refer to Figure 6-7. Suppose That Price Is P0. Total