An individual's ________ surplus is the area ________ the ________ curve and above the ________ up to the quantity ________.
A) consumer; under; demand; market price, the consumer buys.
B) producer; under; supply; market price, the producer sells.
C) consumer; above; supply; choke price, the consumer buys.
D) producer; supply; under; choke price, the producer sells.

Question

Quizplus · Accepted Answer

Consumer surplus is the area between the demand curve and the market price up to the quantity that the consumer buys. This concept measures the benefit that consumers receive from consuming a good, as they are willing to pay a price higher than the market price to acquire it. The other options are incorrect as they mix up the variables or use the wrong concepts (e.g. the choke price is not relevant for consumer surplus).

An Individual's ________ Surplus Is the Area ________ the ________

An Individual's Surplus Is the Area the