(ii)
Area A in the chart above represents Bill’s consumer surplus because consumer surplus is the area trapped
between the demand curve, the line representing price, and the vertical axis.
(iii)
Area B in the chart above represents producer surplus because producer surplus is the area trapped between
the supply curve, the line representing price, and the vertical axis.
Q* QuantityBSDP*PriceQ* QuantityASDP*PriceMicroeconomics Full-Length Practice Test 2Microeconomics Full-Length
Practice Test 2