Figure 7-1

-Refer to Figure 7-1.When the price is P₁,consumer surplus is
A)a.
B)A + B.
C)A + B + C.
D)A + B + D.

Question

Figure 7-1
 
-Refer to Figure 7-1.When the price is P₁,consumer surplus is
A)a. 
B)A + B. 
C)A + B + C. 
D)A + B + D.

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum amount a consumer is willing to pay for a good or service and the actual price paid. In Figure 7-1, consumer surplus is represented by the area above the price line and below the demand curve.

At price P₁, consumer surplus is represented by the shaded area A + B + C. Therefore, the correct choice is C.

Figure 7-1 -Refer to Figure 7-1.When the Price Is P₁,consumer Surplus Is