Consumer Surplus Is Equal to

question 95

Multiple Choice

Consumer surplus is equal to

• A) the area under the demand curve.
• B) the area under the demand curve above the good's price.
• C) the area under the demand curve below the good's price.
• D) the good's price times the quantity purchased.

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Definitions:

Earnings Per Share

A financial metric indicating the portion of a company's profit allocated to each outstanding share of common stock.

Price-Earnings Ratio

A financial ratio that measures a company's current share price relative to its per-share earnings, used to evaluate the relative value of a company's shares in the market.

Partial Income Statement

An income statement that reports revenue, expenses, and net income over a specified period of time but does not include all of the details found in a comprehensive income statement.

Earnings Per Common Share

A measure of a company's profitability that calculates the net income available to common shareholders per share of common stock outstanding.