On a market graph, economic surplus can be identified as the area that is to the:
A)right of the quantity, above the demand curve, and below the supply curve.
B)left of the quantity, above the demand curve, and below the supply curve.
C)right of the quantity and between the demand and supply curves.
D)left of the quantity and between the demand and supply curves.

Question

Quizplus · Accepted Answer

Economic surplus, which includes both consumer and producer surplus, is found to the left of the equilibrium quantity and between the demand and supply curves on a market graph. This area represents the total benefits received by consumers and producers in the market.

On a Market Graph, Economic Surplus Can Be Identified as the Area