Consumer Surplus

question 18

Multiple Choice

Consumer surplus:

• A) does not exist in equilibrium.
• B) is illustrated by the area under the demand curve and above the market price.
• C) is illustrated by the area under the demand curve and below the market price.
• D) is illustrated by the area above the supply curve and under the demand curve.

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Definitions:

Encoding Failure

is a failure to process and store information into memory, leading to its unavailability for later retrieval.

Interference

A cause of forgetting that occurs because information or associations stored either before or after a given memory hinder the ability to remember it.

Consideration Failure

An oversight or neglect in thoroughly thinking through or regarding all aspects and consequences of a decision or action.

Encoding Failure

The inability to create a memory link because the information was not attended to or analyzed deeply enough.