Figure 19-4
Figure 19-4 shows the U.S. demand and supply for leather footwear.
-Refer to Figure 19-4.Suppose the government allows imports of leather footwear into the United States.The market price falls to $24.What area represents consumer surplus?

Question

Figure 19-4
  Figure 19-4 shows the U.S. demand and supply for leather footwear.
-Refer to Figure 19-4.Suppose the government allows imports of leather footwear into the United States.The market price falls to $24.What area represents consumer surplus?

Quizplus · Accepted Answer

Consumer surplus is the area above the market price and below the demand curve. Therefore, the total consumer surplus is represented by the areas R, S, T, and U. Thus, the correct choice is B which includes all these areas.

Figure 19-4 Figure 19-4 Shows the U.S. Demand and Supply