Figure 9-9

-Refer to Figure 9-9.What is consumer surplus in this market after trade
A)A
B)A + B + D
C)B + C
D)B + C + D

Question

Figure 9-9
 
-Refer to Figure 9-9.What is consumer surplus in this market after trade
A)A 
B)A + B + D 
C)B + C 
D)B + C + D

Quizplus · Accepted Answer

Consumer surplus is the difference between the price consumers are willing to pay for a good and the price they actually pay. In this market, the price consumers are willing to pay is represented by the demand curve, and the price they actually pay is represented by the equilibrium price, P*. The area below the demand curve and above the equilibrium price represents consumer surplus. In this case, that area is represented by triangle B.

Figure 9-9 -Refer to Figure 9-9.What Is Consumer Surplus in This Market