Consider a market that has linear supply and demand curves, and is in equilibrium. The area above the price line and below the demand curve is
A) consumer surplus.
B) producer surplus.
C) marginal cost.
D) marginal benefit.

Question

Quizplus · Accepted Answer

The area above the price line and below the demand curve represents the consumer surplus, which is the difference between what consumers are willing to pay and what they actually pay.

Consider a Market That Has Linear Supply and Demand Curves