Figure 9-10

-Refer to Figure 9-10.Consumer surplus in this market after trade is

Question

Figure 9-10
 
-Refer to Figure 9-10.Consumer surplus in this market after trade is

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a product and the actual price paid. After trade, consumer surplus is the area between the demand curve and the new market price (shown by the blue shaded region). This includes areas A, B, and D. Therefore, the correct choice is A + B + D, which is C.

Figure 9-10 -Refer to Figure 9-10.Consumer Surplus in This Market After Trade