Asked by Johanna Lissette Veloz Segarra on May 04, 2024
Verified
Refer to Figure 4.6. At equilibrium, consumer surplus is area
A) A.
B) A + B + C.
C) G.
D) E + F + G.
Equilibrium
A situation in a market where demand equals supply, and there is no tendency for the quantities supplied and demanded to change.
Market
The institution through which buyers and sellers interact and engage in exchange.
S And D
Stands for Supply and Demand, which are the forces that determine the price of goods and services in a marketplace.
- Identify the equilibrium point in a market based on supply and demand curves and calculate the consumer and producer surplus at equilibrium.
Verified Answer
SY
Sinem Y?ld?zMay 08, 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 area is A + B + C.
Learning Objectives
- Identify the equilibrium point in a market based on supply and demand curves and calculate the consumer and producer surplus at equilibrium.