Figure: Consumer Surplus II

question 142

Essay

Figure: Consumer Surplus II
(Figure: Consumer Surplus II) Look at the figure Consumer Surplus II.If the price of the good decreases from $2 to $1, consumer surplus will increase by:
A.$5.
B.$10.
C.$25.
D.$35.

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Definitions:

Sales Dollars

The total revenue generated from the sale of goods or services, measured in dollar amount.

Common Fixed Expenses

Expenses that remain constant in total regardless of changes in the level of activity or volume of output.

Break-even

The point at which total cost and total revenue are equal, meaning there is no net loss or gain.

Net Operating Income

The total profit of a company after operating expenses but before deducting interest and taxes.