On a graph,consumer surplus is the area
A)between the demand and supply curves.
B)below the demand curve and above price.
C)below the price and above the supply curve.
D)below the demand curve and to the right of equilibrium price.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good or service and the actual price they pay. On a graph, consumer surplus is represented by the area below the demand curve and above the price line. This is because consumers are willing to pay a higher price for the product, but due to the market equilibrium, they end up paying less, leading to a surplus. Therefore, the correct choice is B.

On a Graph,consumer Surplus Is the Area