Figure 7-2
-Refer to Figure 7-2.Which area represents consumer surplus at a price of P2?

Name: Figure 7-2 -Refer to Figure 7-2.Which area represents consumer surplus at a price of P2?
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Question

Figure 7-2 
-Refer to Figure 7-2.Which area represents consumer surplus at a price of P2?

Quizplus · Accepted Answer

Consumer surplus is the area between the demand curve and price line. At a price of P2, the demand curve is represented by the line AB. The area between line AB and the price line (CG) represents the consumer surplus. Therefore, the correct choice is B.

Figure 7-2 -Refer to Figure 7-2.Which Area Represents Consumer Surplus at a Surplus