-Refer to the figure above. If the market price for sunglasses is $50, Area A represents the________ .

Name: -Refer to the figure above. If the market price for sunglasses is $50, Area A represents the________ .
Brand: Quizplus
Rating: 4.8 (46 reviews)

Question

Quizplus · Accepted Answer

Area A represents the consumer surplus, which is the difference between what consumers are willing to pay for a good or service and what they actually pay. In this case, since the market price is $50, the area above the price and below the demand curve (Area A) represents the consumer surplus.

-Refer to the Figure Above