Use the following to answer questions:
Figure: Monopoly 6
-(Figure: Monopoly 6) If the market in this figure is a competitive market, consumer surplus is given by area(s):
A) A + B + C.
B) B + C.
C) A.
D) A + B.

Question

Use the following to answer questions:
Figure: Monopoly 6 
-(Figure: Monopoly 6) If the market in this figure is a competitive market, consumer surplus is given by area(s):
A) A + B + C. 
B) B + C. 
C) A. 
D) A + B.

Quizplus · Accepted Answer

Consumer surplus is the difference between the price consumers are willing to pay for a good and the price they actually pay. In a competitive market, the price is determined by the interaction of supply and demand, and the consumer surplus is given by the area below the demand curve and above the price line. In this figure, the consumer surplus is given by area A.

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