The Area Under the Demand Curve but Above the Equilibrium

question 342

Multiple Choice

The area under the demand curve but above the equilibrium price is called

• A) consumer surplus.
• B) producer surplus.
• C) accounting profit.
• D) economic profit.

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Definitions:

Average Annual Income

The average amount of money earned per year over a specified period.

Net Cash Flow

The difference between a company's cash inflows and outflows over a specific period of time.

Cash Flowing

The movement of funds in and out of a business, indicating its operating, investing, and financing activities.

Expenses

Amounts used to generate revenue; assets used up or services consumed in the process of generating revenues.