Refer to the diagram. Assuming equilibrium price P1, consumer surplus is represented by areas
A) a + b.
B) a + b + c + d.
C) c + d.
D) a + c.

Name: Refer to the diagram. Assuming equilibrium price P1, consumer surplus is represented by areas A) a + b. B) a + b + c + d. C) c + d. D) a + c.
Brand: Quizplus
Rating: 4.7 (31 reviews)

Question

Refer to the diagram. Assuming equilibrium price P1, consumer surplus is represented by areas
A) a + b. 
B) a + b + c + d. 
C) c + d. 
D) a + c.

Quizplus · Accepted Answer

Consumer surplus is the area between the demand curve and the equilibrium price (P1) up to the quantity consumed (Q1). The area represented by a + b signifies the consumer surplus.

Refer to the Diagram