Total Surplus Is Represented by the Area

question 99

Multiple Choice

Total surplus is represented by the area

• A)under the demand curve and above the price.
• B)above the supply curve and up to the price.
• C)under the supply curve and up to the price.
• D)between the demand and supply curves up to the point of equilibrium.

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Definitions:

Cash Received

The actual amount of money received by a company during a specific period, including from sales, services, loans, investments, and other sources.

Accounts Receivable

Financial obligations of customers to a company for products or services already delivered but not settled.

Depreciation Expense

Depreciation expense is the allocated amount of the cost of a tangible asset over its useful life, recognized in accounting to account for the decrease in the asset's value over time.

Net Income

The company's remaining earnings once all costs, taxes, and expenses are deducted from its total revenues.