Exhibit 6.8

-Refer to Exhibit 6.8,which shows the market equilibrium for opera tickets.The demand curve for opera tickets is labeled D and the supply curve is labeled S.At market equilibrium,the area _____ represents the consumer surplus of all buyers in the market.

Question

Exhibit 6.8
 
-Refer to Exhibit 6.8,which shows the market equilibrium for opera tickets.The demand curve for opera tickets is labeled D and the supply curve is labeled S.At market equilibrium,the area _____ represents the consumer surplus of all buyers in the market.

Quizplus · Accepted Answer

The consumer surplus is the difference between the price consumers are willing to pay for a good and the price they actually pay. In the diagram, the consumer surplus is represented by the area below the demand curve and above the equilibrium price. This area is labeled "a" in the diagram.

Exhibit 6.8 -Refer to Exhibit 6.8,which Shows the Market Equilibrium for Opera