Question

Consumer surplus is equal to the difference between the maximum price a buyer n willing to pay and the market price the minimum price a buyer is willing to pay and the market price the maximum price a setter is willing to accept and the market price the minimum price a seller is willing to accept and the market price. Consumer surplus is shown graphically as the area under the demand curie and above market price Above the supply curve and above the market price above the supply curve and below the market price under the demand curve and below the market price

Answer 1

Answer:

The answers are:

• Consumer surplus is: equal to the difference between the maximum price a buyer is willing to pay and the market price
• Consumer surplus is shown graphically as: the area under the demand curie and above market price

Explanation:

Consumer surplus is the difference between the maximum price customers are willing to pay for a product or service, and the actual price for the product or service. The demand curve usually has a downward slope, since customers will always be willing to buy a larger quantity given a lower price. The area beneath the demand curve and above the equilibrium price is the consumer surplus.