Asked by Thomas Ramirez on May 06, 2024
Verified
(Figure: Consumer Surplus I) Look at the figure Consumer Surplus I.At a price of P1,consumer surplus equals the area:
A) ABP2.
B) AFP1.
C) AQ30.
D) P1P2BF.
Consumer Surplus
The distinction in the total potential consumer payment for a good or service and their actual payment.
Surplus I
A situation where the quantity of a good or service supplied exceeds the quantity demanded, often leading to a price decrease.
- Comprehend the notion of consumer surplus and its graphical representation.
Verified Answer
ZK
Zybrea KnightMay 07, 2024
Final Answer :
B
Explanation :
Consumer surplus is the area above the price and below the demand curve. At a price of P1, consumer surplus equals the area AFP1U1B11.
Learning Objectives
- Comprehend the notion of consumer surplus and its graphical representation.
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