On a supply and demand diagram, consumer surplus is the area
A)between the supply and demand curves
B)below the supply curve and below price.
C)below the demand curve and above price.
D)below the entire demand curve.
E)above the entire demand curve.

Question

Quizplus · Accepted Answer

Consumer surplus is the area below the demand curve and above the market price. It represents the difference between the highest price a consumer is willing to pay (as reflected by the demand curve) and the actual price they pay in the market. Therefore, choice C is the best answer.

On a Supply and Demand Diagram, Consumer Surplus Is the Area