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Consumer surplus is represented by the area _____ the demand curve and _____ the price that the consumer pays.
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36 votes
36 votes
Consumer surplus is represented by the area _____ the demand curve and _____ the price that the consumer pays.

User Mahdi Alkhatib
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1 Answer

18 votes
18 votes

Answer:

under

above

Step-by-step explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay – price of the good

For example, if the willingness to pay for a book is $100 and the price of the book is $50.

Please check the attached image for a diagram showing consumer surplus

Consumer surplus : $100 - $50 = $50

Consumer surplus is represented by the area _____ the demand curve and _____ the price-example-1
User Lante
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