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Commerce · Q380

Economics

Graduate and Post Graduate · Commerce · question 380

Q380

The total area under the demand curve of good measures

A.
Marginal utility
B.
Total utility
Answer
C.
Consumers surplus
D.
Producer surplus

Answer: Option B

Solution

Answer: Option B
Solution:
The total area under the demand curve of good measures total utility. The demand curve itself shows the utility each consumer will get from buying the good, and the price paid is the cost for getting that utility.