On a Graph,consumer Surplus Is Represented by the Area

question 59

Multiple Choice

On a graph,consumer surplus is represented by the area

• A)between the demand and supply curves.
• B)below the demand curve and above price.
• C)below the price and above the supply curve.
• D)below the demand curve and to the right of equilibrium price.

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Definitions:

Standard Cost System

An accounting method that uses standard costs for materials, labor, and overhead to value inventory and cost of goods sold, facilitating variance analysis.

Cost of Goods Sold

The immediate expenses linked to the manufacturing of products a company sells, such as materials and labor.

Adjusted

Modified or changed to correct or alter a previous situation, figure, or account.

Net Operating Income

A measure of a company's profitability, calculated by subtracting operating expenses from operating revenue, excluding taxes and interest.