Total Consumer Surplus in a Market Is Measured as the

question 95

Multiple Choice

Total consumer surplus in a market is measured as the

• A) area bounded above the market clearing price and beneath the market demand curve.
• B) area bounded below the market clearing price and above the market supply curve.
• C) vertical distance from the horizontal (quantity) axis to the market clearing price.
• D) horizontal distance from the vertical (price) axis to the equilibrium quantity.

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Definitions:

Cross-Price Elasticity

A measure of how the quantity demanded of one product changes in response to a change in the price of another product.

Percentage Change

A mathematical calculation that shows how much a quantity has increased or decreased as a proportion of its former value.

Complementary Products

Goods or services that enhance or are used together with another, increasing the overall value of the primary product.

Hot Dogs

A cooked sausage, traditionally grilled or steamed and served in a sliced bun as a fast-food.