On a graph with a demand curve, consumer surplus is the area

Name: On a graph with a demand curve, consumer surplus is the area
Brand: Quizplus
Rating: 4.8 (41 reviews)

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay and what they actually pay. It is represented on a graph by the area above the market price and below the demand curve. This is because consumers are willing to pay more than the market price for certain units of the good, and that extra amount they are willing to pay is considered their surplus.

On a Graph with a Demand Curve, Consumer Surplus Is