A ________ consumer surplus is measured by subtracting price from the willingness to pay for a good.

A ________ consumer surplus is measured by subtracting price from the willingness to pay for a good. The market consumer surplus is measured by an area under the ________ curve and above the price up to the relevant quantity.

Group of answer choices

Market: Supply

Individual: Supply

Market: Demand

Individual: Demand

Expert Solution

Answer- Correct option is 'C'

A market consumer surplus is measured by subtracting price from the willingness to pay for a good. The market consumer surplus is measured by an area under the demand curve and above the price up to the relevant quantity.

Consumer surplus is a measure of economic welfare that people gain from purchasing and then consuming goods and services. Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or services. Consumer surplus is indicated by the area under the demand curve and above the market price.

Rahul Sunny answered 2 years ago

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