Use the following to answer question(s): Surplus and Demand

-(Exhibit: Surplus and Demand) The amount by which the total benefits to consumers exceeds their total expenditure is called _______ and is depicted at quantity OE by the area _______ .
A) producer surplus; BCD
B) consumer surplus; OCDE
C) consumer surplus; BCD
D) net benefit; OBDE

Question

Use the following to answer question(s): Surplus and Demand
 
-(Exhibit: Surplus and Demand) The amount by which the total benefits to consumers exceeds their total expenditure is called _______ and is depicted at quantity OE by the area _______ .
A) producer surplus; BCD 
B) consumer surplus; OCDE 
C) consumer surplus; BCD 
D) net benefit; OBDE

Quizplus · Accepted Answer

The definition provided fits the concept of consumer surplus, not producer surplus or net benefit. Additionally, the area depicted at quantity OE is the area above the equilibrium price (BC) and below the demand curve (DE), which is represented by choice C.

Use the Following to Answer Question(s): Surplus and Demand