Figure 7.3

-Refer to Figure 7.3. The market price is P_fe. The consumer surplus is the region

Question

Figure 7.3 -Refer to Figure 7.3. The market price is P_fe. The consumer surplus is the region

Quizplus · Accepted Answer

Consumer surplus is the area between the demand curve and the market price. In this case, it is the area ABP_fe. Option A includes the area of producer surplus and option C includes an area above the demand curve, which does not represent consumer surplus. Option D and E are incorrect as they do not represent the correct area of consumer surplus.

Figure 7.3 -Refer to Figure 7.3. the Market Price Is Pfe. the Price

Figure 7.3 -Refer to Figure 7.3. the Market Price Is P_fe. the Price