The area between the market price and the demand curve provides a measure of:
A)consumer surplus.
B)producer surplus.
C)consumer surplus plus producer surplus.
D)marginal utility.
E)the deadweight loss arising from free trade.

Question

Quizplus · Accepted Answer

The area between the market price and the demand curve is known as consumer surplus. It represents the difference between what consumers are willing and able to pay for a good or service and what they actually pay for it. This measure reflects the benefit that consumers receive from being able to purchase the good at a lower price than what they would be willing to pay.

The Area Between the Market Price and the Demand Curve