What does the area below a demand curve and above the price measure
A)producer surplus
B)total surplus
C)consumer surplus
D)willingness to pay

Question

Quizplus · Accepted Answer

The area below the demand curve and above the price measures consumer surplus, which represents the difference between the maximum price a consumer is willing to pay and the actual price paid. Producer surplus is the area below the price and above the supply curve, while total surplus is the sum of consumer and producer surplus. Willingness to pay is the maximum amount a consumer is willing to pay for a good or service, but it is not directly related to the area below the demand curve and above the price.

What Does the Area Below a Demand Curve and Above