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Jairo Cordero
on Dec 11, 2024

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Consumer surplus is the area on the graph

A) above the supply curve and below the demand curve.
B) below the demand curve and above the market price.
C) that represents the gains that producers receive when they sell a product.
D) that reflect the opportunity cost of producing the a good.

Consumer Surplus

The variance between the aggregate amount consumers intend and can afford to pay for a good or service and the total they actually do pay.

Supply Curve

A supply curve is a graph that shows the quantity of goods that producers are willing to sell at different prices, typically depicting a positive relationship between price and quantity supplied.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period, typically downward sloping.

  • Comprehend the idea of consumer surplus and the method for its calculation.
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MW
Maurice WatkinsDec 14, 2024
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