Figure 7-2

-Refer to Figure 7-2.When the price is P2,consumer surplus is
A) A.
B) B.
C) A+B.
D) A+B+C.

Name: Figure 7-2 -Refer to Figure 7-2.When the price is P2,consumer surplus is A) A. B) B. C) A+B. D) A+B+C.
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Question

Figure 7-2
 
-Refer to Figure 7-2.When the price is P2,consumer surplus is
A) A. 
B) B. 
C) A+B. 
D) A+B+C.

Quizplus · Accepted Answer

Consumer surplus is the area above the price and below the demand curve up until the quantity purchased. At P2, consumer surplus is equal to the area between the demand curve and the price up until point E, which is only represented by area A. Therefore, the correct choice is A.

Figure 7-2 -Refer to Figure 7-2.When the Price Is P2,consumer Surplus Is