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The total area under the demand curve of good measures

A. Marginal utility

B. Total utility

C. Consumers surplus

D. Producer surplus

Answer: Option B

Solution(By Examveda Team)

The total area under the demand curve of good measures total utility. The demand curve itself shows the utility each consumer will get from buying the good, and the price paid is the cost for getting that utility.

This Question Belongs to Commerce >> Economics

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Related Questions on Economics

Which among the following statement is INCORRECT?

A. On a linear demand curve, all the five forms of elasticity can be depicted

B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.

C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.

D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.