The total consumer surplus for good X can be calculated in all ways EXCEPT as:
A) the sum of the individual consumer surpluses for all buyers of X.
B) the area below the demand curve for X and above the price of X.
C) the area bounded by the demand curve for X and the two axes.
D) the sum, for all buyers of X, of the difference between what each buyer is willing to pay for X and the amount actually paid.

Question

Quizplus · Accepted Answer

The area bounded by the demand curve for X and the two axes represents the total value to consumers, not the consumer surplus. Consumer surplus is specifically the area above the price and below the demand curve.

The Total Consumer Surplus for Good X Can Be Calculated