Question

1. Consumer surplus is equal to the difference between

a. the maximum price a buyer is willing to pay and the market price.

b. the minimum price a buyer is willing to pay and the market price.

c. the maximum price a setter is willing to accept and the market price.

d. the minimum price a seller is willing to accept and the market price.

 

2. Consumer surplus is shown graphically as the area

a. under the demand curve and above market price.

b. above the supply curve and above the market price.

c. above the supply curve and below the market price.

d. under the demand curve and below the market price.