FIGURE 12- 3
-Refer to Figure 12- 3. The area representing consumer surplus in a monopoly equilibrium is outlined by
A) 0P4Eq2.
B) P3P4C.
C) P2P4E.
D) ABE.
E) ACE.

Question

FIGURE 12- 3
-Refer to Figure 12- 3. The area representing consumer surplus in a monopoly equilibrium is outlined by
A) 0P4Eq2. 
B) P3P4C. 
C) P2P4E. 
D) ABE. 
E) ACE.

Quizplus · Accepted Answer

Consumer surplus in a monopoly equilibrium is the area above the market price (P4) and below the demand curve (D) and to the left of the quantity produced (Qm). This area is outlined by the line segment P3P4C in the graph. Therefore, the correct choice is B.

FIGURE 12- 3 -Refer to Figure 12- 3. the Area Representing Consumer Surplus