Asked by Asmadi Zkeri on May 27, 2024
Verified
Refer to Figure 7-9. At equilibrium, consumer surplus is represented by the area
A) A.
B) A+B+C.
C) D+H+F.
D) A+B+C+D+H+F.
Consumer Surplus
The difference in what consumers think to pay for a good or service and the actual amount they pay.
Equilibrium
A condition where the supply and demand in the market are equal, leading to stable prices.
- Describe the connection between the prices of commodities and the excess supply.
Verified Answer
TK
Taylor KellerMay 28, 2024
Final Answer :
B
Explanation :
Consumer surplus is the area above the price level and below the demand curve, up to the quantity traded. At equilibrium, this is represented by areas A, B, and C.
Learning Objectives
- Describe the connection between the prices of commodities and the excess supply.