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How do you calculate the area underneath the demand curve when it asks what the total value is

User Abiezer
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1 Answer

20 votes
20 votes

Answer:

Total utility

Step-by-step explanation:

The demand curve gives the amount acceptable to the consumers as price for a given quantity of a product. That is to say, given the available quantity of a product, the height of the demand curve gives the amount the consumers estimate the worth of the product

The area under the demand curve, therefore, represents the amount of utility or satisfaction that can be derived from a good or service, given that the demand curve is the representation of the estimation of the worth of a good by a consumer and price that the consumers pay is the utility cost

User Zgue
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