-What area in the above figure is the consumer surplus at the efficient quantity?
A) A
B) A + B + C
C) F
D) D + E + F

Question

-What area in the above figure is the consumer surplus at the efficient quantity?
A) A 
B) A + B + C 
C) F 
D) D + E + F

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. At the efficient quantity, the price consumers are willing to pay is equal to the marginal cost of production. Therefore, the consumer surplus is equal to the area below the demand curve and above the marginal cost curve. This area is labeled A + B + C in the figure.

-What Area in the Above Figure Is the Consumer Surplus