In a market graph, consumer surplus is the area:
A)between the demand curve and the supply curve.
B)above the price.
C)below the demand curve.
D)above the price and below the demand curve.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price that consumers are willing to pay for a good or service and the actual price paid. It can be visually represented as the area above the market price and below the demand curve. Therefore, the correct option is D - above the price and below the demand curve.

In a Market Graph, Consumer Surplus Is the Area