Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss
-As shown in Exhibit 3A-2, if the market is in equilibrium, then ____ represents consumer surplus.

Question

Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss 
-As shown in Exhibit 3A-2, if the market is in equilibrium, then ____ represents consumer surplus.

Quizplus · Accepted Answer

In the graph, consumer surplus is represented by the area above the equilibrium price (point E) and below the demand curve (AE). Therefore, choice B (AEBC) represents consumer surplus. Choices A, C, and D do not represent consumer surplus in equilibrium.