Consumer surplus is shown graphically as the area _____ the market price.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay for a good and what they actually pay. Graphically, it is shown as the area below the demand curve and above the market price because it represents the amount that consumers are willing to pay but do not have to pay due to the market price being lower than their willingness to pay. Option B is incorrect because it does not align with the definition of consumer surplus. Option C and D are incorrect because they refer to producer surplus, not consumer surplus.

Consumer Surplus Is Shown Graphically as the Area _____ the Market