The triangular area below the demand curve and above the market price is known as:
A) producer surplus.
B) consumer surplus.
C) average total cost.
D) marginal cost.
E) total revenue.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay for a good or service (represented by the demand curve) and what they actually pay (the market price), thus it is represented by the area below the demand curve and above the market price.

The Triangular Area Below the Demand Curve and Above the Market