Consumer surplus is the area
A) below the demand curve and above the market price.
B) below the supply curve and above the market price.
C) above the demand curve and below the market price.
D) above the supply curve and below the market price.
E) below the demand curve and above the supply curve.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good and the actual market price. This means that the consumer surplus is the area below the demand curve and above the market price, as this represents the amount that consumers are willing to pay but are not required to pay in order to purchase the good.

Consumer Surplus Is the Area