-In Figure 32.1, at the market price-quantity combination where production is limited, the consumer surplus is

Question

Quizplus · Accepted Answer

Consumer surplus is the area between the price the consumers are willing to pay and the price they actually pay, up to the quantity traded. In this case, it is represented by the area AP_floorB, which is above the market price and below the demand curve up to the quantity where production is limited.