Use the following to answer question:
-(Figure: Consumer Surplus I) Look at the figure Consumer Surplus I.If the price rises from P₁ to P₂,consumer surplus decreases by the area:

Question

Use the following to answer question:

-(Figure: Consumer Surplus I) Look at the figure Consumer Surplus I.If the price rises from P₁ to P₂,consumer surplus decreases by the area:

Quizplus · Accepted Answer

Consumer surplus is the area between the demand curve and the price level up to the quantity demanded. When the price rises from P₁ to P₂, the consumer surplus decreases by the area under the demand curve between these two prices, which is represented by the area P₁P₂BF.

Use the Following to Answer Question