Consumer surplus is equal to the difference betweenthe maximum price a buyer is willing to pay and the market price.the minimum price a seller is wiling to accept and the market pricethe minimum price a buyer is willing to pay and the market pricethe maximum price a seller is willing to accept and the market priceConsumer surplus is shown graphically as the areaunder the demand curve and above the market price.above the supply curve and below the market price.above the supply curve and above the market priceunder the demand curve and below the market price.

Question
Asked Sep 30, 2019
Consumer surplus is equal to the difference between
the maximum price a buyer is willing to pay and the market price.
the minimum price a seller is wiling to accept and the market price
the minimum price a buyer is willing to pay and the market price
the maximum price a seller is willing to accept and the market price
Consumer surplus is shown graphically as the area
under the demand curve and above the market price.
above the supply curve and below the market price.
above the supply curve and above the market price
under the demand curve and below the market price.
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Consumer surplus is equal to the difference between the maximum price a buyer is willing to pay and the market price. the minimum price a seller is wiling to accept and the market price the minimum price a buyer is willing to pay and the market price the maximum price a seller is willing to accept and the market price Consumer surplus is shown graphically as the area under the demand curve and above the market price. above the supply curve and below the market price. above the supply curve and above the market price under the demand curve and below the market price.

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Step 1

Consumer Surplus: It refers to the difference between the maximum price the buyer is willing to pay and the market price of the good. Willingness to pay is presented by the demand curve. So, the area under the demand curve and above market price is considered as consumer surplus.

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Step 2

As per the definition of consumer surplus the correct option is “the maximum price a buyer is willin...

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