Author Question: Consumer surplus: a. does not exist in equilibrium. b. is illustrated by the area under the demand ... (Read 47 times)

jrubin · **on:** Jun 30, 2018

Consumer surplus:
a. does not exist in equilibrium.
b. is illustrated by the area under the demand curve and above the market price.
c. is illustrated by the area under the demand curve and below the market price.
d. is illustrated by the area above the supply curve and under the demand curve.

Question 2

If Bill is willing to pay 10 for one good X, 8 for a second, and 6 for a third, and the market price is 5, then Max's consumer surplus is:
a. 24 b. 18.
c. 9 d. 6.