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Commerce · Q1017

Economics

Graduate and Post Graduate · Commerce · question 1017

Q1017

By total consumer surplus, economists mean (in P-Q space)

A.
the area of the triangle formed by the demand curve, the price axis and the equilibrium price line
Answer
B.
the area between the average revenue and marginal revenue curves
C.
the difference between the maximum price the consumer is willing to pay for a good (vertical intercept of demand curve) and the minimum price the producer is willing to sell at (vertical intercept of supply curve)
D.
Both A and C

Answer: Option A

Solution

Answer: Option A
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