The total amount of consumer surplus in a market is equal to the area below the market demand curve and above the market price.

Question

Quizplus · Accepted Answer

This statement is true. Consumer surplus is the difference between what consumers are willing to pay for a good or service (as indicated by the demand curve) and what they actually pay (as indicated by the market price). The total consumer surplus in a market is equal to the area below the demand curve and above the market price, as this represents the additional value that consumers receive from the good beyond what they had to pay for it.

The Total Amount of Consumer Surplus in a Market Is