Exhibit 13-6 Refer to Exhibit 13-6.In perfect competition,consumer surplus is area:
A) a
B) a + b
C) a + b + c
D) a + b + d

Question

Exhibit 13-6  Refer to Exhibit 13-6.In perfect competition,consumer surplus is area:
A) a 
B) a + b 
C) a + b + c 
D) a + b + d

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good and the actual price they pay. In perfect competition, the market price equals the marginal cost of production, which is represented by the supply curve. Thus, consumer surplus is the area above the market price and below the demand curve, which is represented by areas a + b + c. Therefore, the correct choice is (C).