Consumer surplus is the area ?
Correct answer: A. below the demand curve and above the price.
- A. below the demand curve and above the price.
- B. above the supply curve and below the price.
- C. above the demand curve and below the price.
- D. below the supply curve and above the price.
- E. below the demand curve and above the supply curve
Explanation
Consumer surplus is the benefit buyers receive above the market price, represented by the area below the demand curve and above the price line. The supply curve is used to identify producer surplus, not consumer surplus.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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