We Can Measure Producer and Consumer Surplus by Looking at the Supply

question 69

Multiple Choice

We can measure producer and consumer surplus by looking at the supply
And demand graphical representation.Consumer surplus is:

• A)the area above the supply curve but below the equilibrium price.
• B)the area below the demand curve but greater than the equilibrium price.
• C)the area below the demand curve all the way down to the quantity axis.
• D)the combined triangular area below the demand curve and above the supply curve.

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Definitions:

Utility Value

The importance or perceived usefulness of something to the user, often influencing their decision to engage with or avoid it.

Break-even Analysis

A financial calculation that determines when a project, product, or business will be able to cover its costs and start generating profit.

Utility

In economics and business, the total satisfaction or benefit derived from consuming a good or service.

Bottom Line

The final line in the accounts of a company or organization, showing the net profit or loss after all expenses have been accounted for.