Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 7 - Part III - Consumers, Producers, and the Efficiency of Markets - Questions for Review - Page 151: 1

Answer

The demand curve marks out the buyer's willingness to pay for each quantity of a good or service, while the area below the curve and above the price equals the consumer surplus.

Work Step by Step

Recognize that the demand curve and willingness to pay is reflected in the demand curve. Next find surplus it is below demand curve and above equilibrium price. Finally make sure you can explain what the consumer surplus is ( it is each consumers willing to pay- price actually paid).
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