Recall that the demand curve can be viewed as a willingness-to-pay curve. It shows the value that consumers place on extra units of the good.
Consumer surplus is the difference between the amount that consumers actually pay and the amount that they would have been willing to pay. On a graph, consumer surplus can be shown as the area under the demand curve and above the prevailing market price.
So, on the graph to the left, which region represents consumer surplus? Click on your answer below.