Consumer surplus is indeed the area between the demand curve and the market price, the difference between the welfare gained from consuming the equilibrium level of output and the total revenue paid to producers, and the net welfare gain to consumers from being able to buy and consume a product. All these descriptions accurately represent different aspects of consumer surplus.

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Consumer Surplus Is

Question 30

Multiple Choice

Consumer surplus is:

A) the area between the demand curve and the market price.
B) the difference between welfare gained from consuming the equilibrium level of output and the total revenue paid to producers.
C) the net welfare gain to consumers from being able to buy and consume a product.
D) All of the above.
E) None of the above.

Correct Answer: