The total benefits derived from consumption is measured as the:

Question

Quizplus · Accepted Answer

The total benefits derived from consumption is measured as the area under the demand curve. This is because the demand curve shows the maximum prices that consumers are willing to pay for each unit of a good or service, and the area under this curve represents the sum of the total benefits received by all consumers in the market. The area under the supply curve, on the other hand, represents the total costs incurred by producers in supplying the good or service, while the net area under the demand and supply curves is a measure of the total surplus (i.e. the difference between the benefits and costs) in the market. The intersection of the demand and supply curves simply shows the equilibrium price and quantity in the market, but does not provide a measure of the total benefits derived from consumption.

The Total Benefits Derived from Consumption Is Measured as The