Total consumer surplus in a market is measured as the
A) area bounded above the market clearing price and beneath the market demand curve.
B) area bounded below the market clearing price and above the market supply curve.
C) vertical distance from the horizontal (quantity) axis to the market clearing price.
D) horizontal distance from the vertical (price) axis to the equilibrium quantity.

Question

Quizplus · Accepted Answer

Total consumer surplus is the difference between the total value that consumers place on a good or service and the total amount that they actually pay for it. This is measured as the area bounded above the market clearing price and beneath the market demand curve. This represents the value that consumers receive from purchasing the good at a price lower than what they would be willing to pay.

Total Consumer Surplus in a Market Is Measured as the