Figure 15-10

-Refer to Figure 15-10.What is the area that represents consumer surplus under a monopoly?
A)the triangle P₀P₁F
B)the triangle P₀P₂E
C)the area P₁P₂EF
D)the rectangle P₁P₃HF

Question

Figure 15-10
 
-Refer to Figure 15-10.What is the area that represents consumer surplus under a monopoly?
A)the triangle P₀P₁F 
B)the triangle P₀P₂E 
C)the area P₁P₂EF 
D)the rectangle P₁P₃HF

Quizplus · Accepted Answer

Consumer surplus under a monopoly is represented by the triangle P₀P₁F, which is the area between the demand curve (P₀F) and the monopoly price (P₁). This is the maximum amount that consumers would be willing to pay for the product, minus the price they actually pay. The other areas listed do not represent consumer surplus.

Figure 15-10 -Refer to Figure 15-10.What Is the Area That Represents Consumer