We Can Measure Producer and Consumer Gains by Looking at a Graph

question 182

Multiple Choice

We can measure producer and consumer gains by looking at a graph of supply and demand. Total welfare in the economy would be:

• 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.