Asked by Milano Irvin on Jul 25, 2024
Verified
(Figure: Market Demand) Look at the figure Market Demand.The amount by which the total benefits to consumers exceed their total expenditure is called _____,and if the price is B,is depicted by the area _____. 
A) producer surplus;BCD
B) consumer surplus;0CDE
C) consumer surplus;BCD
D) net benefit;0BDE
Consumer Surplus
The gap between the price consumers are ready to pay for a good or service and the price they end up paying.
Market Demand
Represents the total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.
- Learn about the concept of consumer surplus and how it is affected by changes in price.
- Develop an understanding of the graphical depiction of consumer and producer surplus.
Verified Answer
AC
Addie ComerfordJul 28, 2024
Final Answer :
C
Explanation :
The amount by which the total benefits to consumers exceed their total expenditure is called consumer surplus, and if the price is B, it is depicted by the area BCD. Therefore, the correct answer is C. Option A is incorrect because producer surplus is the amount that producers benefit by selling at a market price that is higher than the price they would be willing to sell for. Option D is incorrect because net benefit is the difference between the total benefits and total costs, and it is not represented by any particular area in the figure.
Learning Objectives
- Learn about the concept of consumer surplus and how it is affected by changes in price.
- Develop an understanding of the graphical depiction of consumer and producer surplus.