We can measure producer and consumer gains by looking at the supply
And demand graphical representation.Total welfare in the economy would
Be:
A)the area above the supply curve but below the equilibrium price.
B)the area below the demand curve but greater than the equilibrium price.
C)the area below the demand curve all the way down to the quantity axis.
D)the combined triangular area below the demand curve and above the supply curve.

Question

Quizplus · Accepted Answer

Total welfare in the economy is represented by the combined triangular area below the demand curve and above the supply curve because this area represents the sum of producer surplus (area above the supply curve and below the equilibrium price) and consumer surplus (area below the demand curve and above the equilibrium price). This combined area represents the maximum amount that consumers are willing to pay for a good, minus the minimum amount that producers are willing to accept, which is the total net gain to society from the transaction.

We Can Measure Producer and Consumer Gains by Looking at the Supply