Consumer surplus in a market for a product would be equal to the area under the demand curve if
A)producer surplus was equal to zero.
B)marginal cost was equal to the market price.
C)the product was produced in a perfectly competitive market.
D)the market price was zero.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay and what they actually pay. If the market price was zero, consumers would pay nothing, but their willingness to pay would be represented by the area under the demand curve, thus making the consumer surplus equal to the entire area under the demand curve.

Consumer Surplus in a Market for a Product Would Be