Asked by Nazmi Olcar on Apr 29, 2024
Verified
(Figure: Consumer Surplus I) Look at the figure Consumer Surplus I.At a price of P2,consumer surplus equals the area:
A) ABP2.
B) AFP1.
C) AQ30.
D) P1P2BF.
Consumer Surplus
The difference between the total amount that consumers are willing to pay and the total amount they actually pay.
Surplus I
A situation where the quantity supplied of a product exceeds the quantity demanded at the current price.
- Familiarize yourself with the concept of consumer surplus and its depiction in graphical form.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
A
Explanation :
Consumer surplus is the area between the demand curve and the price level up to the quantity demanded, which is represented by the area ABPS1.
Learning Objectives
- Familiarize yourself with the concept of consumer surplus and its depiction in graphical form.
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