The area below a demand curve and above the price measures
A)producer surplus.
B)consumer surplus.
C)excess supply.
D)willingness to pay.

Question

Quizplus · Accepted Answer

The area below the demand curve and above the price measures the consumer surplus, which represents the difference between what consumers are willing to pay for a good or service and what they actually pay. It reflects the benefits enjoyed by consumers who pay less than their willingness to pay for a product or service. Therefore, option B, consumer surplus, is the correct answer.

The Area Below a Demand Curve and Above the Price