Using supply and demand curve analysis, the triangular area above the equilibrium price and under the demand curve is:
A) consumer surplus.
B) producer surplus.
C) marginal cost.
D) deadweight loss.

Question

Quizplus · Accepted Answer

The triangular area above the equilibrium price and under the demand curve represents the amount that consumers are willing to pay for a good above the price they actually have to pay (i.e. their willingness to pay minus the actual price). This is known as consumer surplus.

Using Supply and Demand Curve Analysis, the Triangular Area Above