The following diagram shows a market equilibrium. D is the demand curve for a good and S is the supply curve of the good. The consumer surplus at a price of $b is given by the area:
Figure 6.6

A)below the curve D and above the curve S.
B)below the curve D and above the market price of $b.
C)below the curve D and above the market price of $d.
D)above the curve D.
E)below the curve S.

Question

The following diagram shows a market equilibrium. D is the demand curve for a good and S is the supply curve of the good. The consumer surplus at a price of $b is given by the area: ​
Figure 6.6​
​

A)below the curve D and above the curve S. 
B)below the curve D and above the market price of $b. 
C)below the curve D and above the market price of $d. 
D)above the curve D. 
E)below the curve S.

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum amount the consumers are willing to pay for a good and the market price they actually pay. At a price of $b, the consumer surplus is the area below the demand curve D and above the market price of $b. Therefore, the correct answer is B.

The Following Diagram Shows a Market Equilibrium