Question

Select one:

a. Price - WTP. Graphically, it is the area below the price and above the demand curve.
b. WTP - Price. Graphically, it is the area below the price and above the demand curve.
c. Price - WTP;Graphically, it is the area below the price and above the demand curve.

Answer 1

Consumer surplus is the difference between what individuals are willing to pay and what they actually pay. It is represented as the area above the market price and below the demand curve. The correct answer is a. Price - WTP.

Step-by-step explanation:

The subject of this question is Economics.

Consumer surplus is the amount that individuals would have been willing to pay, minus the amount that they actually paid. It is represented graphically as the area above the market price and below the demand curve. In this case, the correct answer is a. Price - WTP.