Consumer Surplus in Supply-Demand Graph

Steps:

• Locate the demand curve, which slopes downward from left to right.
• Identify equilibrium at intersection of supply and demand, with price at level Y and quantity at point X.
• Consumer surplus is the triangular area above equilibrium price (line YO) and below demand curve (from W to X).
• Match this triangle to labeled areas, confirming WYX as the region.

Why A is correct:

• WYX represents the area between demand curve and equilibrium price, per definition of consumer surplus as total benefit minus total expenditure.

Why the others are wrong:

• B: XYO is below equilibrium, representing producer surplus portion.
• C: WYO includes area below price line, mixing consumer and deadweight loss.
• D: OYZ is unrelated, likely part of total expenditure or supply curve area.

Final answer: A