Asked by
Alain Giroux
on Dec 08, 2024Verified
On a graph, consumer surplus is the area above the equilibrium price and below the demand curve.
Consumer Surplus
The difference between what consumers are willing to pay for a good or service and what they actually pay, indicating the economic benefit to consumers.
Equilibrium Price
The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers.
- Comprehend the principle of consumer surplus and its calculation method.
- Determine the regions that illustrate consumer and producer surplus in a graphical representation.
Verified Answer
SS
Learning Objectives
- Comprehend the principle of consumer surplus and its calculation method.
- Determine the regions that illustrate consumer and producer surplus in a graphical representation.